Friday, January 30, 2009

Globalization and Recession

"There's a dangerous tendency to resort to protectionism when things get tough. In 1929, American tariffs turned a domestic financial crisis into a global economic crisis that inflicted damage for years to come."

States Mr. Jeff Immelt, chairman and CEO of General Electric in an excellent article "Time to Re-Embrace Globalization" here in The Economist's, The World in 2009. Mr. Immelt lays down six "Points of Principle" in the article that drive the debate within GE. Summarily, they are:
  • A strong international trade system is fundamental
  • Continued economic liberalization enhances growth
  • Protectionism must be resisted
  • Global trade must be fair
  • Governments must pursue domestic policies that allow their citizens to thrive in the global economy
  • Each of us must contribute
It may seem that the above is apropos for the current USA administration, yet an article from The Mises Institute provides an interesting look at the previous USA administration here from 2003.

Mr. Immelt ends by stating - "True leaders must re-embrace globalization".

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