Posted by: Bill | September 17, 2009

Bowing to Labor

The WSJ reports on a recent Obama administration action regarding Chinese tire imports. Such a move (tariffs as high as 55% 35%) can only be interpreted as a deep bow to labor as the administration would like their support regarding health insurance legislation. We figured out a long time ago that mercantilism doesn’t work. This quote sums up the irony of this action quite well given that Obama is supposedly a Democrat:

The move essentially would cut off the source of nearly 17% of all tires sold in the U.S. last year and hit cost-conscious consumers particularly hard, as retailers will have to find alternative sources for the lower-end tires that make up much of what China sends to the U.S.

I know another term for “cost-conscious”. I suspect there are more cost-conscious voters in the US than there are union members, but things such as popular support and “the right thing to do” don’t enter into political equations such as this.

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