So far, world leaders have managed to keep the stopper in the bottle - but in Australia the unions are demanding that the government set the " protectionism genie " loose !
That is the same genie that wreaked havoc back in the 1930's and set nation against nation in a vain attempt to save jobs and contain trade within each country.
Surely it should be evident to elected union officials that if we legislate to protect Australian made goods with a a demand that they have a twenty percent price preference against competing imports - then a similar scheme will be instantly adopted by the countries with which we trade.
Fortunately, Kevin Rudd has rejected this type of approach, but there is always the chance that hysteria and a militant union leadership could provoke civil disturbances in support of bringing in such a regime.
It would join a host of other " quick fix " solutions - such as nationalising key industries and price control in an attempt to create a " command economy ".
Those with short memories will forget that this was precisely the problem that led to the collapse of the Soviet Union.
It looks like a light at the end of a very dark tunnel with signs that we may be emerging from this world recession - provided we keep our nerve and continue to trade with the rest of the world.
" Protectionism " is one sure way to snuff out that light !
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