Sunday, November 21, 2010

Some jobs are saved, some may be created, and some are lost. So what is the net effect of protectionism? Yeah, I don't know either

If a country gets into a trade spat/war with another country, it is important to remember it is a two way street.  As with any fight, the other guy has weapons at his disposal too.  Frederic Bastiat reminds us from the grave, what is "seen" with protectionism are the jobs saved when the government intervenes (because the politicians make sure they tell us) to protect certain industries, but what is "unseen" (or at least murky) are the jobs that are lost or NEVER created by protectionist measures.  Some jobs are saved, some may be created, and some are lost.  So what is the net effect of protectionism? Yeah, I don't know either...Below is a list of states that will likely have causalities in the event of a tit-for-tat trade spat with China...

10 US States That Will Get Murdered If China Slows Its Imports(click on link to see the rest of the states)

#1 California

$9.7 billion of exports to China last year
175% growth over decade
--computers and electronics worth $2.9 billion

--waste and scrap worth $2.1 billion

--machinery (except electrical) worth $925 million

--transportation equipment worth $824 million

--chemicals worth $758 million


#2 Washington

$9.1 billion of exports to China last year

379% growth over decade

--transportation equipment worth $4.1 billion

--crop production worth $3.3 billion

--waste and scrap worth $423 million

--computers and electronics worth $265 million

--minerals and ores worth $134 million

#3 Texas

$8.9 billion of exports to China last year
513% growth over decade
--chemicals worth $3.6 billion

--computers and electronics worth $1.5 billion

--machinery (except electrical) worth $916 million

--crop production worth $703 million

--waste and scrap worth $565 million
View My Stats