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Journalism of Courage
Yes,this is a downturn,but analogies to the Great Depression should not be made lightly. Yet,details of the US stimulus package passed by the House of Representatives made the reference unavoidable: in particular,the requirement that all the investment financed by the stimulus use only American iron and steel. For those haunted by the mistakes made by the international community,the parallel was obvious to the Smoot-Hawley Act,which was passed in the dark days of 1929,enhanced American protectionism,set off a massive trade war,and led directly to the tragedies and political turmoil of the 30s. Those mistakes must not be repeated.
British Prime Minister Gordon Brown made as much clear: This is not the 30s, he said,todays world can come together. The danger is that a domino effect could be set into motion,with stimulus packages that are supposed to be coordinated suddenly competing,instead. Unfortunately,nobody in America seemed to be listening: its sclerotic political process meant that no trade negotiator has been confirmed,and the treasury secretary was busy elsewhere which meant the seniormost American official available was White House adviser Valerie Jarrett,who gave a speech on President Obamas connections to Chicago that seemed more appropriate for a fundraising dinner than a gathering concerned about international policy. The United States cant afford to waste an opportunity to lead in creating a new era: the Senate debates the stimulus package this week,with an added provision that spreads the protectionist impulse across sectors. President Obama,if he wishes to lead,mustnt let that pass.
