Heightened protectionism with US fiscal stimulus II?
By Jon Fernquest
The
Bangkok Post published an interview with the UC Davis economist Philip Martin this
week (See his webpage at UC Davis and academic
papers for free download).
Dr. Martin specializes in immigration, farm labour, and economic development and is Chair of the UC Comparative Immigration & Integration Program (See information on this academic program)
Immigration within Asian has been one focus of Dr. Martin's research including publications on Thailand written for the ILO:
1. The economic contribution of migrant workers to Thailand: towards policy development (In Thai language and English language)
2. Thailand: improving the management of foreign workers (In English and Thai languages)
The subject of the interview in today's article is could happen to US and Asian economies in the near future.
Several previous articles published here are relevant to this discussion.
Much earlier in the economic downturn Harvard economist Dani Rodrik showed how protectionism could, theoretically at least, make the fiscal stimulus more effective (Read article).
US consumers reacted to the negative hit to their income and savings by saving more (Read articles #1, #2, #3 and the contraction in household balance sheets).
Today's article begins after the vocabulary.
(Photo on right is of a ship laden with exports heading for the US).
protectionism, trade protectionism - the
economic policy of restraining trade between nations, through methods
such as tariffs on imported goods, restrictive quotas, and a variety of
other restrictive government regulations designed to discourage
imports, and prevent foreign take-over of local markets and companies (See Wikipedia)
fiscal stimulus - temporary increases in government spending and tax cuts to get the economy growing again and end an economic downturn
UC, UC System - the University of California, one the most important university systems in the United States (See Wikipedia)
UC Davis - the UC campus specializing in agriculture studies (See Wikipedia)
immigration - moving from one country to another, or from one region of a country to another
economic development - the process of a poorer country becoming a richer country
Chair - head of a university department or program
focus - one area where most of the work is done
ILO - International Labour Organization, the United Organization dealing with legal issues (See Wikipedia)
theoretically - according to a formal academic explanation of how something works
fiscal stimulus - temporary increases in government spending and tax cuts to get the economy growing again and end an economic downturn
UC, UC System - the University of California, one the most important university systems in the United States (See Wikipedia)
UC Davis - the UC campus specializing in agriculture studies (See Wikipedia)
immigration - moving from one country to another, or from one region of a country to another
economic development - the process of a poorer country becoming a richer country
Chair - head of a university department or program
focus - one area where most of the work is done
ILO - International Labour Organization, the United Organization dealing with legal issues (See Wikipedia)
theoretically - according to a formal academic explanation of how something works
Economics
GLOBAL ECONOMY
New US stimulus may give rise to protectionism
19/01/2010Parista Yuthamanop
Asian economies may not benefit from a new economic stimulus programme in the United States, which could see protectionism rise and consumers save more, says Philip Martin, a labour economist from the University of California
stimulus
- a set of programmes, especially government spending
programmes, designed to start an economy growing again
แผนกระตุ้นหรือฟื้นฟูเศรษฐกิจ
benefit - to get help or an advantage from something ผลประโยชน์
benefit - to get help or an advantage from something ผลประโยชน์
The US's new economic stimulus will be funded by debt repayments from American banks who received support under the government's Troubled Asset Relief Program, a rescue package for financial institutions that was part of an earlier stimulus scheme
funded
- given money บริจาค
debt - an amount of money that you owe หนี้
rescue - to save someone from a dangerous situation ช่วยชีวิต
financial institutions - a bank or other company that sells financial services
scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
debt - an amount of money that you owe หนี้
rescue - to save someone from a dangerous situation ช่วยชีวิต
financial institutions - a bank or other company that sells financial services
scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
Amid growing joblessness, American politicians might make a ''Buy American'' clause a condition of the stimulus package, said Mr Martin
Exporters from Asian countries could also face growing protectionism such as anti-dumping laws for agricultural and fishery products
clause
- a part or section of a legal document
''Buy American'' clause - a part of a law that says that the government spending it authorizes must be spent in the US
condition - something that must be done before another thing can happen เงื่อนไข
dumping - unfair pricing of export goods, when a manufacturer exports a product to another country at a price which is below its costs of production or below the price it charges in its home market (See Wikipedia)
antidumping laws, anti-dumping measures - actions taken by a government to stop (what it thinks is) dumping from another country
fishery - an area of water where fish are caught so they can be sold พื้นที่ในการจับปลา
''Buy American'' clause - a part of a law that says that the government spending it authorizes must be spent in the US
condition - something that must be done before another thing can happen เงื่อนไข
dumping - unfair pricing of export goods, when a manufacturer exports a product to another country at a price which is below its costs of production or below the price it charges in its home market (See Wikipedia)
antidumping laws, anti-dumping measures - actions taken by a government to stop (what it thinks is) dumping from another country
fishery - an area of water where fish are caught so they can be sold พื้นที่ในการจับปลา
The financial burden on exporters would increase even if they won any trade disputes due to costs involved with having the International Trade Commission arbitrate cases
Mr Martin said unemployment in the US now was worse than at the end of the Great Depression in 1940s as the total number of jobs has remained static over the past decade
burden
- a serious or difficult problem that you have to deal with ภาระ
financial burden - the difficult problem of dealing with a situation of having less money
trade - business
arbitrate cases - try to settle a legal case (a dispute or fight between two sides)
decade - a period of ten years ทศวรรษ, ระยะเวลา 10 ปี
Great Depression - the long and painful period of high unemployment and reduced economic activity during the 1930s ending only with World War II (See Wikipedia)
remained static - did not change
financial burden - the difficult problem of dealing with a situation of having less money
trade - business
arbitrate cases - try to settle a legal case (a dispute or fight between two sides)
decade - a period of ten years ทศวรรษ, ระยะเวลา 10 ปี
Great Depression - the long and painful period of high unemployment and reduced economic activity during the 1930s ending only with World War II (See Wikipedia)
remained static - did not change
''We need 2 million [new] jobs a year, but we did not do that over the past decade,'' he said. ''The US population was 35 million more in 2010 than 2000, but there was no net job growth.''
The spending power of American consumers plummeted with the collapse of the housing market in 2007-08, as lending from banks has remained sluggish
population
- all the animals or plants of a particular type or
group who live in one country, area or place
กลุ่มพืชและสัตว์ที่อาศัยอยู่ในบริเวณหนึ่ง
collapse - (of people and business) to fail suddenly; to suddenly be unable to continue or work correctly ล้ม (ธุรกิจ) , falling down suddenly พังลงมา ล้ม
lending - giving money to someone who agrees to pay it back in the future การให้ยืม
sluggish - not performing or reacting as well as usual (เศรษฐกิจ) ที่ซบเซา
collapse - (of people and business) to fail suddenly; to suddenly be unable to continue or work correctly ล้ม (ธุรกิจ) , falling down suddenly พังลงมา ล้ม
lending - giving money to someone who agrees to pay it back in the future การให้ยืม
sluggish - not performing or reacting as well as usual (เศรษฐกิจ) ที่ซบเซา
Unemployment has more than doubled to 10% since the recession began in Dec 2007. The situation is particularly grim as the number of jobless people who have university degrees is at an historic high, he said
recession
- a period when trade and industry are not successful and there is a
lot of unemployment ภาวะเศรษฐกิจถดถอย
particularly - especially, or more than usual โดยเฉพาะ
grim - unpleasant and making you feel upset and worried ที่โหดร้าย
at an historic high - the first time in history it has reached this high level
particularly - especially, or more than usual โดยเฉพาะ
grim - unpleasant and making you feel upset and worried ที่โหดร้าย
at an historic high - the first time in history it has reached this high level
Around 20,000 jobs were lost each day on average over the period
Mr Martin said government borrowing to finance the salaries of federal workers was driving the US recovery, but local governments have seen deficits balloon
finance
- to provide money for something จัดหาเงินทุนให้
federal - relating to the central government, and not to the government of a region, of some countries such as the United States เกี่ยวกับสหพันธรัฐ
recovery - the process of becoming normal and healthy again ฟื้นฟูสภาพ
local - in or related to the area that you live, or to the particular area that you are talking about ท้องถิ่น
federal - relating to the central government, and not to the government of a region, of some countries such as the United States เกี่ยวกับสหพันธรัฐ
recovery - the process of becoming normal and healthy again ฟื้นฟูสภาพ
local - in or related to the area that you live, or to the particular area that you are talking about ท้องถิ่น
While the vast majority of Americans are employed, the psychological impact of the current situation in the job market could limit future consumer spending
vast
- extremely large ส่วนใหญ่
majority - more than half, more than 50 percent of a group
impact - an effect or influence ผลกระทบ
current - of the present time ปัจจุบัน
majority - more than half, more than 50 percent of a group
impact - an effect or influence ผลกระทบ
current - of the present time ปัจจุบัน
''There has been talk about a new frugality in the US. Last year, attendance at museums and movies were an all-time record. Psychologists began to wonder if Americans shifted to experiences rather than spending on goods,'' he said
frugality - not
spending as much money and saving it instead
attendance - the number of people who go to an event จำนวนหรือผู้คนที่ไปเข้าร่วม
all-time record - the highest it has ever been, has never been this high before
record - the best or most ever achieved สถิติ
experiences - something that happens to you
attendance - the number of people who go to an event จำนวนหรือผู้คนที่ไปเข้าร่วม
all-time record - the highest it has ever been, has never been this high before
record - the best or most ever achieved สถิติ
experiences - something that happens to you
One-fifth of US banks' housing debts are for mortgages that exceed the market value of their homes
The US government has tried convincing banks to avoid foreclosing on distressed mortgages, but the progress has been slow
exceed
- to be more than something; to go beyond a limit เกินกว่าที่กำหนด
avoid - to try to prevent something from happening หลีกเลี่ยง
distressed mortgages - home loans that cannot be paid back to the bank
foreclosing on distressed mortgages - when s home is taken away from the person who cannot pay back the loan they got to buy the home
progress - moving forward, growing, making improvements
avoid - to try to prevent something from happening หลีกเลี่ยง
distressed mortgages - home loans that cannot be paid back to the bank
foreclosing on distressed mortgages - when s home is taken away from the person who cannot pay back the loan they got to buy the home
progress - moving forward, growing, making improvements
Mr Martin said import demand in the US dropped by one-third in early 2009 compared with the past, but hopeful signs emerged in the third quarter
Mr Martin said American workers had seen no wage increases as employers need to shoulder the burden of health insurance, which costs an average $3.50 per hour per worker
import
- to buy or bring in products from another country นำเข้า
signs - things that show you what the situation is
emerged - appeared ปรากฏออกมา
emerged - to come out of something โผล่ออกมา
wage - an amount of money that you earn for working, usually according to how many hours or days you work each week or month ค่าจ้าง
wage - to start or continue a war or fight ประกาศสงคราม
shoulder - to deal with or accept something difficult แบกรับภาระ หรือสถานการณ์
shoulder the burden - be the one who does or pays for this difficult thing
signs - things that show you what the situation is
emerged - appeared ปรากฏออกมา
emerged - to come out of something โผล่ออกมา
wage - an amount of money that you earn for working, usually according to how many hours or days you work each week or month ค่าจ้าง
wage - to start or continue a war or fight ประกาศสงคราม
shoulder - to deal with or accept something difficult แบกรับภาระ หรือสถานการณ์
shoulder the burden - be the one who does or pays for this difficult thing
(Source: New US stimulus may give rise to protectionism, 19/01/2010, Parista Yuthamanop, link)
