WTO: Protectionism Could Prolong the Recession

File this under, "Yeah we already knew that." It's a story from today's WaPo noting that Pascal Lamy, head of the World Trade Organization is warning that protectionist steps being taken by countries to stimulate their economies could eventually choke global trade and prolong the recession. Here's a quote from Lamy:

"The danger today is of an incremental build-up of restrictions that could slowly strangle international trade and undercut the effectiveness of policies to boost aggregate demand and restore sustained growth globally,"

Hopes are that the G20 will address this at next week's meeting in London. A strong statement from them, notes wise man Gary Hufbauer of the Peterson Institute, is needed if only "to slow down the juggernaut."

Just one more reminder that trade creates wealth for everyone and the restriction of trade sends the global economy the other way. Just ask Smoot. Or  Hawley.