Just say no to ‘crack cocaine of economics’

WASHINGTON (Reuters) — Dallas Federal Reserve President Richard Fisher warned on Monday against "Buy America" provisions in a proposed fiscal stimulus law and said it could lead to devastating trade protectionism.

"Let me just be blunt. Protectionism is the crack cocaine of economics. It may provide a high. It's addictive and it leads to economic death," Fisher told C-Span television in an interview for its "Washington Journal" program. …

… Fisher also urged Congress to balance the immediate need to stimulate growth with the long-term consequences of piling on debt that could be a drag for years to come.

"Our job is to maintain price stability while we engender the growth and employment of the United States … It is a very difficult balancing act, but it can only be done if it is buttressed by sensible fiscal policy," Fisher said. …