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) No mainstream economist believes that the kind of full-blown protectionist response demonstrated by Los Angeles last week would do anything beyond saving some jobs in the short run. Ultimately, most contend, consumers would pay the price of a trade war, with scarcer and more expensive imports.
In any event, the American and Japanese economies are inextricably linked. The U.S. could not manage without Japanese capital to help finance its budget deficit. Nor could Japan prosper without an American market in which to sell its high-quality consumer goods. Most American politicians and businessmen understand that a system of free and open trade remains the best bet for global prosperity. But when American workers feel besieged by the Japanese, that rational message is drowned out by a chorus calling for retribution.