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graywolf624 · 11-20-2008, 08:32 AM

Maybe it's better to look at this from what happens if your protectionist theories come into play. First anyone that works for a foreign auto company in the US will lose their job or if you take a slightly less rash approach thousands will be laid off. Then since GM is selling their cars at a loss due to union labor and they dont have a competitor that can compete at normal labor cost levels, they'll jack their price up. Now suddenly Joe Schmoes Focus costs 25k instead of 16k. What does that do to the ability of Americans to buy cars and by defacto the real income and standard of living of this country? Thats right it goes down. One industry would be a minor blip, but you do it in one and like the bailout disease it will spread to all. The real income rich or poor will decrease. The jobs still disappear as the economy isn't recovering (which is the only way jobs will go back up) and the number of cars drops due to the cost increase.

Jimmy Carters is calling, he wants his ideas back.

11-20-2008, 08:32 AM	#17
graywolf624 Regular User Join Date: Oct 2003 Location: Hellaware USA Posts: 3,865	Maybe it's better to look at this from what happens if your protectionist theories come into play. First anyone that works for a foreign auto company in the US will lose their job or if you take a slightly less rash approach thousands will be laid off. Then since GM is selling their cars at a loss due to union labor and they dont have a competitor that can compete at normal labor cost levels, they'll jack their price up. Now suddenly Joe Schmoes Focus costs 25k instead of 16k. What does that do to the ability of Americans to buy cars and by defacto the real income and standard of living of this country? Thats right it goes down. One industry would be a minor blip, but you do it in one and like the bailout disease it will spread to all. The real income rich or poor will decrease. The jobs still disappear as the economy isn't recovering (which is the only way jobs will go back up) and the number of cars drops due to the cost increase. Jimmy Carters is calling, he wants his ideas back. __________________ Common Sense- so rare it's a super power. Last edited by graywolf624; 11-20-2008 at 08:46 AM.