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To: SeekAndFind
Protectionists are not conservatives. Didn't smoot hawley basically turn a recession into the great depression?
31 posted on 04/25/2011 8:24:10 AM PDT by ejdrapes ("Trump is NO conservative." - Jim Robinson)
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To: ejdrapes
Didn't smoot hawley basically turn a recession into the great depression?

NO. The Fed policy that shrunk the money supply 30% during the four years following the stock market crash was the main cause of the GD. Smoot-Hawley was a miniscule factor compared to Fed policy and FDRs policies.

The great depression and its offspring, the New Deal, could both have been avoided if the Federal Reserve had performed the task assigned to it. All the Federal Reserve had to do to avoid the Depression and the subversion of the American constitutional order was to purchase $1 billion in government securities during the 10-month period from December 1929 to October 1930. The result would have been an increase, instead of decrease, in high-powered money, and the banking crisis that began in the autumn of 1930 would not have occurred.

The Fed's "Depression" and the Birth of the New Deal

Based upon the work of he sainted Milton Friedman. A great article for anyone who wants to understand the GD.

43 posted on 04/25/2011 8:48:49 AM PDT by Will88
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