General Discussion
In reply to the discussion: Offshoring: Should America be impoverished in order to help other populations become better off? [View all]Sen. Walter Sobchak
(8,692 posts)First of all, contrary to oft reported nonsense the US remains an intensively export dependent economy and while exports only amount to 13% of GDP that is a greater reflection of a large internal market rather than poor performance. The danger to the US of trade retaliation is that in the industries where the US exports the most high-value added products are also the industries with some of the greatest and most aggressive foreign competition. You say that won't happen - but it has happened every single time. Before Bush capitulated on the insane steel tariffs Europe was preparing massive retaliation against US agricultural and automotive exports. Japan was preparing their own retaliatory package. Brazil threatened trade retaliation over US cotton dumping and the US again capitulated agreeing to modify our export loan assistance program to be compliant with anti-dumping norms.
As for your link, the conclusions being extrapolated are ridiculous, exports falling by two thirds was a disaster. FDR was at the forefront campaigning against it for that very reason.