While, as virtually every economist who's not politically captured will attest, protectionism has always been one of the most pernicious big-government endeavors (depression-era tariffs were an absolute economic disaster!), given the dynamics of the 21st Century U.S. economy it's more destructive now than ever.
GM lowered its guidance this morning based on the impact of tariffs on its bottom line (stock down 7% as I type). Plus, to severely compound matters, its prospects for accessing the credit markets on favorable terms is being undermined as well:
(Bloomberg Intelligence) -- Tariff pains through higher raw-material expenses, currency volatility, and likely volume, will weigh on General Motors' earnings and cash flow, tempering the automaker's ability to improve its credit profile.In case you missed it, yesterday's Quote of the Day, digs a little deeper into the risks of the current road we're on.