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Posted to rec.woodworking
MikeWhy MikeWhy is offline
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Default BUY USA clause in bailout package violates NAFTA

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[... snipped "buy USA" for bailout ...]
This is just starting to get worse by the day. The arrogance and
stupidity of this whole bailout situation is getting ridiculous.


Your anger and ire are misplaced. We're in the situation we're in by
spending our money overseas. Our largess with our neighboring countries,
through NAFTA, brought only the beneficients' scorn and disdain, while we
suffered loss of jobs and loss of capital. Hell, even our marijuana comes
from Canada and Mexico. It's true; we can't compete with their smaller
economies on a level field.

As for the stimulus money, the simplest analogy is with pipes and plumbing.
In a closed system, the money makes several roundtrips through the economy
before petering out, multiplying its effectiveness each time through. The
money goes to workers in your community, where they spend it on goods, and
they in turn spend it on more goods. We pay taxes on the money. The money
comes back out to pay for more work and more product. There's a name for
this economic theory. Keynesian, I think, but I might as well try to do
integral calculus as remember the fine details.

So, what about the import tool restrictions? Why cut NAFTA partners out of
the pie? First, our dear neighbors don't pay taxes or tariffs in the US.
Money leaves, and doesn't return. The status quo is exactly why we have a
problem. So, what to do about the lack of domestic tools and suppliers? This
is secondary money, funding US industry, making more jobs, opening a market
for manufacturing. Manufacturing builds a long supply chain, opening more
domestic markets, developing still more jobs, and circulating the capital to
more corners of the economy. Or something like that.