How do I teach about the protectionist clauses in the bill?
An anonymous viewer asks:
How do I teach about the protectionist clauses in the bill? Is there a history of "buy American"? Do other countries have this?
David Tucker responds:
Many European countries have protectionism. France, for
instance protects various retail and food service industries from foreign
competition (i.e. American chains, etc.) If you are looking for a negative
example on how protectionism can impact an industry, look at the Italian auto
industry and how its protectionist policies supplied its customers with
inferior autos for years. I have used this issue during my international trade
unit to set-up a structured debate between students. Students could advocate
for and against protectionism.
Bruce Damasio responds:
Wow! All textbooks cover this issue in their chapters on
international trade, should be easy to find for you. The news today as I type
has articles on the trip to Canada
by President Obama and in them should be discussion on NAFTA and his statements
on "Buy American" thinking and what occurred.
Historically, it has lead to a more severe depression over
time. See the results of actions in the Hoover
years that led to events up to 1932 and the election of FDR. You can study the
issues of absolute and comparative advantage in trade as well as benefits and
costs from global trade, free markets and barriers to trade as well.
Yes, other nations employ and use protectionist measures ,
Peggy Pelt responds:
You could discuss the pros and cons of protectionist
policies in general as well as the various methods. You could explain how the U.S. economy is
interrelated with other countries. (The fact that our recession is having
global economic impact illustrates this point.) The general trend has been
toward reducing trade barriers. (Think in terms of NAFTA or the creation of the