As we warned in our blog piece last summer - A History Lesson for Obama - those who do not learn from history are condemned to repeat it.

As reported elsewhere, buried in Porkzilla was a 'buy American' feature that has earned threats of retaliation from abroad.   And rightly so.

First of all, let us observe that in these days of Globalization, it's getting harder and harder to "buy American" in the literal sense.  Sure there are still a few areas where products are wholly American - like produce sold by local farms at farmers markets, and also some raw material process manufacturers like the few steel mills still in operation, and so forth.  However, by and large "American" products are more and more an amalgam of parts and materials manufactured across the globe.  So the idea codified by Congress in Porkzilla is both inflammatory to our trading partners, and is also hugely self-defeating.  The American Consumer simply can't "buy American" in the literal sense anymore.   Like it or not, our Government, with the apathetic support of the electorate, traded much of our manufacturing base overseas in exchange for massive loans, which we will one day have to pay back.  We happily risk criticism by economics professionals over a simplistic statement regarding complex international trade relationships, but we maintain that as simplistic as that statement may be, it's largely true.

Having made this argument - that there are relatively few truly 100% American products untouched by international trade - there is also a historical context which makes "buy American" an incredibly dim-witted, and recklessly irresponsible concept to advocate in the middle of an international economic crisis:  Trade barriers erected by Congress shortly after the great market crash of 1929 were a key essential enabler to the Great Depression that followed.        

In addition to trade barrier legislation after the crash of '29, the other key essential enabler to The Great Depression was that Congress raised taxes.   Of course it is impossible to go back in time (as yet) and modify history, however, many economic scholars have suggested the difference between a severe recession back in the day, and The Great Depression, were trade barriers and tax increases enacted after the crash.  We remind The Stupid Nation that The Great Depression wasn't a direct result of the crash of 1929, it was brought upon ourselves by Congress, when it raised trade barriers and raised taxes.  That's when The Great Depression started - a great self inflicted wound.

And here we are in 2009, 80 years later, talking about trade barriers and raising taxes in the midst of a severe recession.  While President Obama has publicly stated opposition to trade barriers embedded in Porkzilla, isn't it curious these provisions weren't outright removed before being signed into law.

And now Obama is talking about raising taxes on the "rich" (still waiting for the final definition of what a socialist considers "rich").

"Those who ignore history are condemned to repeat it"

We warned you.