The Buy American and the Butterfly Effect

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It seems that the Republicans are trying to test the Chaos Theory. The greatest evangelists of free markets are now trying to change the rules, again, focusing on their benefits. In the 80’s Regan and Thatcher promoted globally that all countries should open their markets, make the privatisation of their public companies and services, let financial markets work freely worldwide, and so on.

The argument and the theory was that with more openness the gap between riches and poor will be mitigated, that the overall commerce will increment and every one will gain, directly and indirectly.

They had the support from International Monetary Fund and from World Bank to enforce their will. All countries that needed money from IMF were forced to follow the neo-liberalism policy if they want to get the money.

And the results we were able to see on Mexico, Russia, Asian, Argentina and Brazil crisis.

Now with “Buy American”, what is exactly the message that they are trying to pass?

Should it be: we were wrong for decades, sorry but our experiment didn’t work in your countries and now, as you will not be able to buy our stuff, we need to protect our markets from your stuff.

Or it is: well, we are changing the rules again, as we did in the 70’s with the “Nixon Shock”, when the United States unilaterally terminated the convertibility of the dollars to gold.

Or it is: we forgot the recent History and the consequences of closing markets as it happened in the end of the 30’s, when the Hawkey-Smoot Tariff Act increased all taxes of the foreign products and worsened the global crisis.

Or it is a little more profound and they want to re-evaluate Chaos Theory, and to see if a no sense sentence may cause a tornado in the other side of the world?

Mario luis Tavares Ferreira is a seasoned senior manager, entrepreneur, with a broad technical background, developed two high tech start-ups, developed business in half dozen countries, has active participation on diverse Linkedin groups and is developing a non-profit project to leverage SMB and Start-up development. For more information please visit my website at  globalentrepreneurship.wordpress.com.

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