06 March 2002

Poverty of dignity "I have long believed that it is this poverty of dignity, not a poverty of money, that is behind a lot of Muslim rage today and the reason this rage is sharpest among educated, but frustrated, Muslim youth." Tom Friedman provides an important analysis of the source of Muslim rage in the world. Why, he asks, isn't there an outcry at the Hindu massacre of hundred of Muslims in India? Israel, he concludes, is an affront to Muslim self-perception. 4:31:42 PM

Free trader "Those who shut down trade aren't confident. They're not confident in the American worker. They're not confident in the American entrepreneur. They're not confident in American products." George Bush in January sure sounded like a committed free trader. But he's clearly not that confident, having imposed 30% tariffs on most steel imports. Almost as convoluted yesterday was US trade representative Bob Zoellick: "In order to promote free trade the US has to manage the home front and the international front." In other words, to get fast track trade authorisation from Congress, this is a protectionist sop. More importantly, as many analysts have observed, states like Ohio and Pennsylvania are filled with steel workers and their sympathisers who might be more inclined to vote Republican this autumn. I think there's little doubt that the steel tariffs will lead to a degree of tit for tat protectionism, they will diminish the strength the US has in the push for the Doha round of WTO trade negotiations, and will in aggregate harm the US economy. There may be a lot of struggling steel workers in the US (through little fault of the workers -- the problem is managements that have been dilatory in adopting global best practice), but there are far more car workers, for example, who work in companies that thrive on sourcing lower cost materials, like steel. 4:20:56 PM

© Copyright 2002 Lance Knobel.