Monday, May 18, 2009

Stimulus “Buy American” Plan: Punish Your Allies First

Ordered by Congress to "buy American" when spending money from the $787 billion stimulus package, the town of Peru, Ind., stunned its Canadian supplier by rejecting sewage pumps made outside of Toronto. After a Navy official spotted Canadian pipe fittings in a construction project at Camp Pendleton, Calif., they were hauled out of the ground and replaced with American versions. In recent weeks, other Canadian manufacturers doing business with U.S. state and local governments say they have been besieged with requests to sign affidavits pledging that they will only supply materials made in the USA….eOutrage in Canada as U.S. Firms Sever Ties To Obey Stimulus Rules, Anthony Faiola and Lori Montgomery, Washington Post, 5/15/09

Never say the Obama people didn’t warn us. It’s a classic case of ignoring reality in pursuit of political objectives. So what if Canada provides us with more oil than any other country? Who cares if Canada is our best trading partner? If this is how the new administration is going to win friends with kinder, gentler diplomacy, perhaps they should study a little history. Trade wars don’t make friends; they create the conditions for sanctions and, ultimately, for pushing your allies on the other side in war.


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