Comments

  1. Marcus

    You reckon we’ll get much by way of positive spillovers if the stimulus package goes ahead? (assuming the ‘buy american’ thing fails…)

  2. Hi Marcus,

    It’s hard to say, we don’t really manufacture the things needed for the projects in the US – and those we do can be sourced there or in neighbouring countries.

    The upside is that it may well bring a general recovery, it may also bring some impressive inflation too though as the money supply increases, the money supply in the USA has almost doubled in the last year alone!

    on the ‘buy american’ idea it is utterly flawed and the kind of protectionism that is a throwback to the smoot hawley days
    economist has an article here: http://www.economist.com/finance/displaystory.cfm?story_id=12798595 (if that link doesn’t work let me know and i’ll email the story to you)

    Thanks for dropping by!
    karl

  3. Marcus

    Thanks for the link Karl. I thinking more of indirect effects that’d just boost exports (or at least prop them up!). Somehow doubt we’ll be looking at protectionism though – People can’t be trying that hard to make things worse! (Though I can hear the taxi drivers trying from where I sit!)

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