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Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference

 

 Clyde Prestowitz giving presentation to CDI...

 

Steve Olson teaching trade negotiations at the Mekong Institute...

 

Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

(09/23/09) Prestowitz Letter to the Editor in the Wall Street Journal

Your editorial "A Protectionist President" (Sept. 15) implies that I was wrong to warn in the 1980s that Japanese mercantilism would rule the world, and you accuse me of false logic in suggesting that a tariff on imports of Chinese tires would actually be supportive of free trade. With regard to Japanese mercantilism, it seems evident to me that having been adopted and imitated by the Asian Tigers and more recently by China, it is indeed well on the way to ruling the world.

As for false logic, it is the Journal that errs by presuming that the conditions necessary to obtain the benefits of free trade exist where, in fact, they don't. The unilateral free trade the Journal propounds is only beneficial when there are no economies of scale, and markets are perfectly competitive. That is decidedly not the situation in the tire industry where competition is oligopolistic and the trading situation is more a zero-sum game than the win-win proposition you presume. In zero-sum situations it is well known that tit for tat is the strategy necessary to obtain cooperation from balky partners.

Clyde Prestowitz


Click Here to Read the Letter at the Wall Street Journal.

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Latest Publications


The Betrayal of American Prosperity.


The Trans-Paific Partnership and Japan.


Making the Mexian Miracle.


Industrial Policy and Rebalancing in the US and China.


The Evolving Role of China in International Institutions.

 

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