Comments on: Congressional stupidity on trade http://www.tradediversion.net/archives/2006/09/congressional-stupidity-on-trade.html Commentary on development, globalization, and trade by Jonathan Dingel Mon, 08 Mar 2010 08:56:20 -0800 http://wordpress.org/?v=2.8 hourly 1 By: reasonable http://www.tradediversion.net/archives/2006/09/congressional-stupidity-on-trade.html/comment-page-1#comment-88 reasonable Sun, 17 Sep 2006 21:35:40 +0000 http://www.tradediversion.net/?p=256#comment-88 I have to agree. I'm a die-hard Democrat but this just made me cringe and want to cry. Who on earth is advising these guys on economic matters? Whoever they are PLEASE fire them at once. This is in effect a system of global import licenses. It's basically a system of quotas. The legislation says they would set the price the license $1 for $1 after a few years, but that's silly, the licenses would be priced on the market to reflect their scarcity value. The license price would soar in effect creating a prohibitive tariff. Aside from being a flagrant violation of WTO rules, it's just plain dumb stupid economics. I have to agree. I’m a die-hard Democrat but this just made me cringe and want to cry. Who on earth is advising these guys on economic matters? Whoever they are PLEASE fire them at once.

This is in effect a system of global import licenses. It’s basically a system of quotas. The legislation says they would set the price the license $1 for $1 after a few years, but that’s silly, the licenses would be priced on the market to reflect their scarcity value. The license price would soar in effect creating a prohibitive tariff. Aside from being a flagrant violation of WTO rules, it’s just plain dumb stupid economics.

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