Open Markets
Many stimulus plans include protectionist measures that are designed to protect domestic industries from foreign competitors at a time when global demand is shrinking. Instead of keeping markets open such policies are deliberately designed to do just the opposite—but by doing so, governments are making the same mistakes as their predecessors during the Great Depression. Germany may be less guilty of this protectionist tendency, as evidenced by the scrapping rebate example mentioned above. The government pays the “cars for clunkers” rebate for every new car, regardless of where it was built; neither does the German Chancellor publicly ask consumers to buy only German cars.