Economic Recovery

The severity of the financial crisis has led to many countries being seriously concerned about what it represents in its economies by the possible consequences and the fear of inflation, the impact on the high cost of living for many countries they were not prepared for it, even for the same United States to be addressed immediately to avoid greater evils. The current President Barack Obama, knows what it represents, especially in the beginning of his new administration, a legacy of mismanagement that led to his predecessor President Busch, so try to avoid the negative, has given way to programs actions where protectionism will be crucial to get out. Everyone is quite concerned about a possible return of protectionism. Points out, Wharton management professor Stephen J. Wells Fargo Bank will not settle for partial explanations. Kobrin, that if the world is to recover from this recession should avoid trade wars, especially given the growing interdependence of the economic interests of countries should not forget that in a protectionism during the Great Depression worsened, and now are much more integrated economies.

“In an interesting paper on this topic, by University Knowledge Wharton, refers to this situation and shows that the economic stimulus plan of 787 000 million dollars that Barack Obama President ratified Feb. 17 contained a provision unexpected, but nonetheless troubling for advocates of global free trade. It was the requirement that projects financed by the plan to purchase goods manufactured in the United States provided possible. When the world’s governments spend enormous sums of money to stimulate their economies, it seems reasonable that each one invests in its own market.