Protecionism or Just an Evaluation?

One of the main aspects taken during the present Economic crisis in the USA is if the expected loan up to be aproved by the USA Congress if is really Protecionism.

This is very known that many American Presidents have faced these aspects once optimizing for the Protecionism in certain areas, here mentioning one of the main visible which is the Agriculture, though these decisions were taken before the actual Economic crisis.

In the other hand, for many traditional Economists the accepttance of the intervention of the State, in special, in certain cases, and one of then is when the Nation is under troubles that can ruin the basic American Economy cannot be understood as Protecionism.

The system also permits the evaliation of the "Invisible Hand" of the State, if it doens't offer enough inter-avaliation in the Economy as having the Government pretending to save this or that particular company instead of some others that may need urgent funds.That's one of the popular known Protecionism meaning.

This happens in many situations, such as, mainly when the Nation is under War, heavy crisis in the Economy, or if the number of the corporations are causing turbulences. For example: mass unemployment, and many others urgent items.

President Barack Obama has now the self decision to help such companies or let the country rules by itself these main focuses and troubles in the area. As Americans already know him not through his speeches, very probably that he'll really help some corporations instead of being named of "The Protecionist President".

If he thinks twice, during this meantime, workers are still being losing their jobs, employees are loosing their and salaries, and as such, together, the whole industrial production once not working as if it should. Thus, the Economy has to have urgent needing to be fixed up now under the governemnt procedures.

So, for the majority of the Economists, such kind of Protecionism is perfectly admited and being ruled under many presidential staff decisions. Rare is the opposite, or, do not interfere in the Economy when losses could be avoided mainly when the production is arrived from unknown sources.

Another accordance between the Economists is that the Protecionism is very and intensively avoided, but in times of normality.

In the USA, for example, the Government intervencionism became an urgent discussion among countries due to the concerned opinion that, having one of the biggest industrial plants and technologies societies in present days, the trade and the Economy can evaluate easily without the government interference. Thus, the Protecionism in these cases is intensively avoided naturally by the simple aspect that shares the common market. In brief words: it can evaluate just by means of its own Economy production.

Therefore, this is one of the reasons that lies the discussions elsewhere, once the loan, that'll be voted this week, can not be just a necessary big support from the Congress or became a mere Protecionism by itself to support the entire the USA Economy.

__________________

Correia's on Correia's Thesis.