To be or not to be...Protectionist

There is a very fine line for the subject and cringe at those who believe it should be one extreme or the other. Senator Clinton has already established herself as a major protectionist, but I wonder what the other candidates stances are on this issue. If Clinton continues on this rampage, she will certainly alienate conservative or pro-business, pro-market Democrats as well as Republicans. During this time of economic prosperity and concerns over whether it will last, she might play herself into a defeat during the Democratic Primary.

With global trade and economic dependence, protectionism will be a key issue in the economic debates for both the primary and general elections. I'm interested to see how big pro-Wall Street politicians like Giuliani feel about this subject. Giuliani is by far the best candidate for Wall Street, or so those who work there believe. His extensive background in business and business law should certainly aid him throughout the Republican Primary. Whether the financial outlook looks bleak or solid, he can use his vast experience to persuade voters that his economic policy will either strengthen or maintain the future.

Whichever party wins, I hope Congress and the financial and economic experts in their cabinet and in key organizations (FED, FOMC, etc.) deter any candidate from going one way or the other. Too much protectionism, such as Sen. Clinton is proposing, will create a steep increase in inflation, decrease US exports as well as imports, and put a significant strain on our diplomatic relationships around the globe. By the same token, failure to create and maintain low-wage jobs will also create economic and social problems such as high unemployment and more dependence on government welfare and tax dollars. Additionally, Wal-Marts will continue to force their suppliers to venture outside of the US to keep up with the low prices they demand, directly affecting the job market.

Protectionism is a touchy subject, one that will not become any easier to figure out as the US economy becomes more reliant on globalization. Creating a limited protectionist platform sounds like the most effective route to counter this problem. Although it will create subjectivity, most who follow the economy can agree that neither extreme would ultimately be beneficial for America. Free trade needs to be emphasized, but some low taxes can offset enough jobs from being sent overseas.