A Bit Of History On Tariffs

A bit of history on Tariffs

In June of 1930 as the depression deepened. The Republicans pressured Herbert Hoover into passing the Smoot-Hawley Tariff act. Over a thousand economists wrote to the President urging him to not sign the bill, Hoover, who was reluctant to sign it, was pressured by his party to sign, he did on June 17th.

The ensuing retaliation from other nations was swift and US exports fell by 18 and 31% during a time that the depression was worsening. Despite assurances by Smoot and Hawley that the tariffs would bring high prosperity, workers and farmers never saw it and the country sank deeper into depression.

Franklin Roosevelt campaigned against the bill and would go on to defeat Hoover and win the white house in a landslide in 1932. Hawley lost his nomination and Smoot with eleven other republican Senators lost their seats in one of the biggest reversals in Senate history.

Tariffs have rarely ever worked and the lesson of the 1930's remains. Today, we have an economy that is the envy of the world but the citizens felt like they were hurting because many had never lived through high inflationary periods. The late 70's and early eighties was the last time we had crippling inflation and it was MUCH worse than todays. I do not believe Americans want Tariffs but they elected an ignoramus who will in all likelihood enact them. The same numbers of economists are warning against them but Donnie Dumbo won't be listening because he is a "stable" genius.