Letters

Is protectionism passé?

Calls for trade protection are growing louder and more intellectually respectable as even leading trade economists such as Paul Krugman criticize Chinese protectionism.

Have these economists lost their mind? Aren’t we all better off thanks to the low prices offered by Walmart?

As the following statistics show, there is something seriously wrong with our trading relationship with China.

The United States has comparatively small trade deficits with all of its other major trading partners, but when it comes to China, U.S. exports in 2009 paid for just more than 20 percent of our imports. Krugman, the winner of the 2008 Nobel Memorial Prize in Economic Sciences, is right to be calling for tariffs on China.

While it is true raising tariffs would be the equivalent of a new consumption tax that would raise the costs of many goods to American consumers, this could be offset with a reduction in income taxes. Moreover, what Americans need now is not more price deflation but more employment opportunities and even some inflation  — especially college students.

You should shudder every time your hear about Walmart’s falling prices. Deflation will raise the real value of your student loans, and persistently falling prices can create an economic death spiral. Consider this: if you know the price of a new car will be lower next month, why buy it this month? You decide (and everyone else decides) to hold off on purchases, and in the meantime the car dealership and auto maker go bankrupt, which further increases unemployment and reduces demand for other products, and so on in a vicious spiral.

The American middle class is drowning in a sea of cheap Chinese goods. Next time you hear someone laugh off protectionism, pause before you join in; the joke is on you.

Edwin Way
Graduate student



Israel responds to Haiti earthquake

Israel, a country experienced in dealing with quick response during times of disaster, has been widely praised for being one of the first countries to respond to the earthquake in Haiti.

A delegation of more than 220 people, consisting of doctors, paramedics, rescue teams, and other specialists, were sent to Haiti from Israel in an effort to rescue and save lives as quickly as possible.

In a Jerusalem Post article by E. B. Solomont on February 19, Ambassador Haim Divon, head of MASHAV — The Israel Center for International Cooperation — stated, “This is one of the biggest disasters in the past decade. Under those circumstances ... it’s the obligation of the international community, and us — ourselves as Jews and Israelis — to do whatever we can.”

Since last Friday, the Joint Distribution Committee has raised $5.5 million for relief work in Haiti and has committed $1.7 million in their first emergency relief phase.

Arriving in Haiti, the Israeli team immediately set up an advanced field hospital in Port-au-Prince. The highly trained medical staff provided emergency aid and medical treatment to many survivors. This hospital was equipped with the most advanced medical equipment to perform surgeries on anyone seeking emergency help.

The mother of the first Haitian baby delivered at the field hospital named her baby Israel.

This medical facility has received praise from international leaders, including former U.S. President Bill Clinton. Clinton is the United Nations Emissary to Haiti and thanked Israel profusely. 

More recently, Israel has focused on the future of Haiti and the long-term needs of the many homeless children. Israeli volunteers immediately opened a school in Port-au-Prince, which will provide education for 800 children.

They searched for previous teachers within the community who would teach. Israel plans to open a $1.5 million school and community center. Trained specialists will remain in Haiti as the island recovers from this mass devastation.

Dana Levy
IU sophomore