Perils of protectionist talk


Posted on January 23, 2011  /  1 Comments

I lived in the US at the peak of the scare stories focused on Japan. I now live in Sri Lanka at the peak of scare stories focused on India. The following should be educative to the scare-mongers:

Economic events and market trends are notoriously unpredictable. In the early 1980s, the Japanese high-technology assault on the American computer and semiconductor industry seemed scary. “What are our kids supposed to do?” asked Walter F. Mondale, the former vice president, speaking to a group of electrical workers. “Sweep up around the Japanese computers?” It captured the economic pessimism of the time, even if it serves as a laugh line today because, after all, how often do you see a Japanese computer?

Full story, focusing on US fears about China is here.

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