The House approved its version of the stimulus package, estimated to cost $819 billion, on Wednesday, and Senate is set to vote soon on its version, which totals nearly $900 billion. President Barack Obama and Democratic congressional leaders hope to pass a unified bill by mid-February. The House bill has “Buy American” provisions that would require U.S.-made iron and steel for infrastructure projects and U.S.-made TSA uniforms. The “Buy American” push could be expanded in the Senate version.
In 1930, when Congress approved the Smoot-Hawley tariffs, other countries responded by closing their markets. The upshot was a collapse in U.S. trade that turned a sharp recession into the Great Depression.
Those who don’t know history are doomed to repeat it. Let’s not make the same mistakes again, especially now.
If a US company wants to remain competitive in the global markets it has to buy technologies, machines, and components it needs to make products with the quality demanded by the global markets. If it cannot, two options are available. Close the business or move overseas.
Are we going to make the same mistakes made 70 years ago? Are we going to chase foreign and domestic businesses/investors away and force them to move their assets to friendlier countries? I am really concerned by the socialist choices made by the Obama administration. Is this what we voted for? Is this the reason the market sagged almost 2.3% today and gold spiked 2.0%? I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/. You can review The Peter Dag Portfolio, free of charge of course. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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