Bush Term 3 Looking More Like Term 1

Because he’s not content to repeat the domestic mistakes of President Bush’s second term, President Obama is now trying to repeat the mistakes of the first term, starting with a tariff.  Apparently, the Chinese are already responding.  This is lose-lose-lose-lose-lose-lose-win(?), in that (almost) everybody loses here.  American consumers lose because they have to pay more for tires.  Chinese producers lose because they won’t sell as many tires.  Chinese consumers lose because they won’t have as much trade with the US.  American producers outside the tire industry lose because they have to pay more for tires, hurting their business.  The American government will probably be subject to a WTO hearing, hurting their standing if they talk about free trade and opening up markets.  And the Chinese government, by having growth be marginally lower than it otherwise would, comes slightly closer to de-stabilization.  The only group that really gains anything here is American tire manufacturers.  So good for them, I guess…

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