Saturday, June 06, 2009

Deja Vu All Over Again
One of the causes of the great depression of 1929 - 1939 was the restrictions on international trade. The USA was largely responsible for this. We passed the Smoot-Hawley Act that raised tariffs on a number of imported goods. Our trading partners, in particular Canada and Britain, retaliated.

WHISTLER, British Columbia (AP) — Canadian mayors have passed a resolution that would potentially shut out U.S. bidders from local city contracts.
The resolution is in retaliation to "Buy American" provisions in President Barack Obama's stimulus bill. Mayors voted 189-175 to approve the resolution at the Federation of Canadian Municipalities conference in Whistler, British Columbia.
The resolution says the federation should support cities that adopt policies that allow them to buy only from companies whose home countries do not impose trade restrictions against Canadian goods.

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