Breathing A Tiny Sigh Of Relief

My biggest concern about the proposed stimulus package now before the Senate (and believe me, it's a long list) has been the "Buy America" provisions which have prompted warnings of retaliation from the EU and Canada.

According to recent evaluations of the Great Depression (by Amity Shlaes and others), the congressional response of protectionism (Smoot-Hawley Act)ignited a global trade war that had the effect of prolonging and deepening the economic downturn.

The ruling Democrats looked determined to repeat that mistake. But yesterday, President Obama promised to remove the most provocaative language from the bill. We will have to wait to see exactly what that means and if it will be enough to sooth European and Canadian nerves.

In the meantime, I'm cautiously hopeful.