A good friend of mine and I were recently discussing the protectionism of President Obama’s stimulus package. While I believe that the problems with our president’s stimulus package are legion, I don’t think that its “buy American” provisions are nearly as worrisome as other aspects.
I have no desire to take up a defense of protectionism, for a couple reasons: firstly, protectionism is a baggage-heavy label applied by its enemies to a scattershot group of economic theories; and secondly, I’m not a protectionist, by the usual definition at least. I much prefer localism, if labels are absolutely necessary.
Nevertheless, here are eight preliminary (and very simplistic) theses on economic localism, naked and unsubstantiated though they may be.
I.
Protectionism can = selfish nationalism. I’m sure there are plenty of economic jingoists who proudly hold to protectionism. But that’s not anything I wish to defend. I much prefer the “localist” label. So…
II.
Localism stands against globalism, which isn’t to say that it is not concerned over the plight of other peoples. Rather, localism makes the case that globalism is actually one of the great oppressive forces in the modern world. Globalism wishes to provide products and services for the cheapest cost that “The Market” can offer. If a Chinese factory can produce G.I. Joes and Matchbox cars for one-quarter the cost of a domestic toy manufacturuing plant, guess who wins out? In 1965, manufacturing made up 53% of the American economy. As of 2004, that number is just 9%. So first, from the American point of view, globalism has made our economic viability utterly dependent on countless foreign industries. We are no longer self-sufficient; only astronomic rates of over-consumption keep us growing (until now, at least). Globalism has fueled almost limitless growth in the first-world, but at a tremendous cost to both the first-world and the third-world.
III.
Localism, even in its most “protectionist” forms, is not against trade between nations. It is not against the idea of imports. And it is certainly not mercantilism—not by a long shot.
IV.
Positively defined, localism prioritizes community rather than growth.
V.
Localism manifests itself in a number of different movements, including agrarianism and New Urbanism. It stands against modernity and its ugly bastard children: suburbanism/urban rot, strip malls, industrial agriculture, corporatism, Washington D.C., and iPods. It stands for urban renewal (read: parish life), regional architecture, small businesses, local and seasonal agriculture, city councils, and the local symphony. Localism doesn’t believe that economic hegemony (i.e. having a McDonalds on every street corner from St Louis to Turin to Bangkok) is healthy for a society. Localism disapproves of putting the liveihoods of a third-world village entirely at the disposal of a first-world corporation.
VI.
Localism emphasizes that in a global economy, the winners are the US corporations who can cut costs and the corrupt foreign leaders who offer up their laborers at unimaginably cheap rates. The losers are the second- and third-world poor. Even worse, when third-world villages are conscripted into the global economy, they become dependent on the “mercy” of their foreign employer. If the first-world corporation closes down production in the village, the workers are even worse off than before.
VII.
Localism believes that just rulers should protect the weak against the powerful. Some might argue that tariffs are a good way to do this. Others might advocate an alternative. See Phillip Blond.
VIII.
Localism is skeptical of the Babelesque goals of globalism. Christian localists often point out the religious dimensions of economic globalist rhetoric. See Cavanaugh’s Being Consumed.