History is there for us to learn from.................unless you are a politician

One of the causes of the Great Depression was the choking off of global trade. For a little diversion, lets take a one question test.

Question 1 - True or False - Global trade is a larger percentage of the global economy now then it was in 1929.

If you answered False then go back to your cave. If you answered True you are correct. So when I see this quoted in the new economic stimulus bill I cringe and die a little inside.

"The "Buy American" provision bars spending on any infrastructure project "unless all of the iron and steel used in the project is produced in the United States."

There would be exceptions if the head of the federal department or agency determines that applying the provision "would be inconsistent with the public interest."

Other exceptions would be made if there was an insufficient quantity of US iron and steel of satisfactory quality available and if inclusion of US iron and steel would raise the overall project's cost by more than 25 percent."

All this will do is ignite a trade war with other nations and choke world trade. WooHoo change is looking much like the past.

© Finance Red 2009