[4rcane]

I recall, on Rush radio show, he talked about a tarrif during the 1930s (government policies) that destroyed the US economy.

I don't know what to think of it. Is a tarriff moving closer to a capitalist system or moving it away? Considering China isn't exactly playing fair

[supercat]

I don't know what to think of it. Is a tarriff moving closer to a capitalist system or moving it away?

One important question, IMHO, is how much money a government will take in taxes if:

1. A domestic worker produces a good which is then consumed domestically.
2. A domestic worker produces a good which is exported.
3. A foreign worker produces a good which is imported for domestic consumption.

The income tax system taxes #1 and #2. Since the cost of a good must include any taxes that flow into government as a result of its production and sale, I would think income taxes put our country's companies at a competitive disadvantage.

Can anyone explain any problems in my theory?

[jec41]

I don't know what to think of it. Is a tarriff moving closer to a capitalist system or moving it away? Considering China isn't exactly playing fair

Tariffs and protectionism are more of a socialist nature.

[TBP]

I recall, on Rush radio show, he talked about a tarrif during the 1930s (government policies) that destroyed the US economy.

Smoot-Hawley. It helped cause the Depression, although the liberal media will never let you know that.

Protecting yourself against those who seek to attack and destroy you is something different from merely protecting yourself from economic competition.

[Graybeard58]

Smoot-Hawley Tariff:

http://www.state.gov/r/pa/ho/time/id/17606.htm

[CowboyJay]

"I recall, on Rush radio show, he talked about a tarrif during the 1930s (government policies) that destroyed the US economy."

From what I understand, our economy was already well in the tank due to the dust-bowl, and the market crash of 1929. I'm still doing research on the SH era, but am still not convinced that the tariffs actually caused problems. I wonder if we were a net exporter, or net importer at that point. That needs to be taken into account as well when predicting possible outcomes of present-day tariffs.

[jeremiah]

The myth that the Smoot Hawley tariffs caused the great depression. This country should raise its revenue from tariffs on imports, that would reduce the price of American goods because cost would be lower without taxes on individuals and companies. Manufacturing would flow back to this country, in order to take advantage of lower cost of doing business. It would make American products on par with those who use slaves to make their goods. Of course, we could just allow more slaves into this country to pick our cotton (er I mean lettuce) cheaply.