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President Obama’s slapping of tariffs on tires imported from China is the latest in a series of protectionist moves by the U.S. that threaten the world trading system, risk retaliation by the U.S.’s largest foreign creditor, and ultimately harm consumers.  A Wall Street Journal editorial today titled “A Protectionist President” points out that Obama’s trade stance could be following in the disastrous footsteps of President Hoover.

The reality is that without the U.S. leading by example, the world trading order is likely…

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Regina Herzlinger, chair of Harvard Business School, in National Review takes on health care and the Obama Administration’s arguments that a government-run plan would increase competition, provide more choice, and lead to greater cost efficiencies:

But before we get swept away, let us remember that these health-insurance markets would be monopolies run by government, two characteristics that normally do not enhance consumer welfare. Picture the efficiency of your Division of Motor Vehicles, for example.

Also consider government-run monopoly liquor stores. Despite their…

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The latest figures on consumer credit from the Federal Reserve show that consumers are hunkering down, especially on credit card debt. Revolving credit outstanding – mainly credit card debt – fell at an annual rate of 9-3/4 percent in February 2009 from the month before. Revolving credit outstanding fell from $963.5 billion in January to $955.7 billion in February. Pools of securitized assets based on credit card debt fell from $448.1 billion to $440.3 billion. These balances are no longer carried…

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The Wall Street Journal editorial got it exactly right:

The Federal Reserve cut rates to historic lows Tuesday, but today it plans to vote to tighten consumer credit — taking away with one hand what it gives with the other. On the agenda is a rule-making that would impose, for the first time, what amount to federal price controls on credit cards.

That’s what the Fed’s proposed amendment to Regulation AA would do. In changes pushed by consumerist groups and grand-standing lawmakers, the proposal would…

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Did the free market cause the financial crisis?  Was it unbridled capitalism?

The Competitive Enterprise Institute and the National Taxpayers Union don’t believe for a minute that capitalism caused the financial crisis.  How can we be so confident?  Because capitalism doesn’t exist in the United States, especially in the financial sector.

Nearly every industry in the U.S. finds itself making regular pilgrimages to Washington to seek special favors—subsidies for this or that, regulations that harm competitors or smaller firms, or trade deals that benefit…

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