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.

Sign Of The Apocolypse

The New York Times agrees with George Bush:

We don’t say it all that often, but President Bush is right: Congress should pass the Colombian free-trade agreement now.

We believe that the trade pact would be good for America’s economy and workers. Rejecting it would send a dismal message to allies the world over that the United States is an unreliable partner and, despite all that it preaches, does not really believe in opening markets to trade. There is no more time to waste. If the lame-duck Congress does not approve the trade pact this year, prospects would dim considerably since it would lose the cover of the rule (formerly known as fast track) that provides for an up-or-down, no-amendment vote.