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Kudlow: Why Trump's protectionist ways will hurt the economy
CNBC ^ | Aug 26 2015 | Kudlow and Moore

Posted on 08/26/2015 5:47:02 PM PDT by WilliamIII

Here's a historical fact that Donald Trump, and many voters attracted to him, may not know: The last American president who was a trade protectionist was Republican Herbert Hoover.

Does Trump aspire to be a 21st century Hoover with a modernized platform of the 1930 Smoot-Hawley tariff that helped send the U.S. and world economy into a decade-long depression and a collapse of the banking system?

(Excerpt) Read more at cnbc.com ...


TOPICS: Politics/Elections; US: New York
KEYWORDS: 2016election; demagogicparty; election2016; fairtrade; freetrade; hawleysmoot; larrykudlow; lawrencekudlow; memebuilding; miltonfriendman; newyork; ntsa; partisanmediashill; partisanmediashills; paulstreitz; smoothawley; tariff; trump
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To: Boogieman

If other countries shut the US out of their markets the US has to respond. Ask Cisco how free China is with Huawei as competition.


101 posted on 08/26/2015 8:29:09 PM PDT by sunrise_sunset
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To: sunrise_sunset
Reagan put tariffs on Japan and they moved production to the US South. That’s why there are Toyota plants in Alabama, etc.

Actually I believe they were import quotas but the effect was the same.

102 posted on 08/26/2015 8:29:27 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

Free trade is an ideal, but few countries practice it other than the US , and we can longer afford to have the world free load off us.


103 posted on 08/26/2015 8:34:20 PM PDT by sunrise_sunset
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To: Bryanw92

Reagan saved Harly-Davidson with a Tarriff on cheap Japanese Bikes.


104 posted on 08/26/2015 8:36:52 PM PDT by Forward the Light Brigade (Into the Jaws of H*ll Onward! Ride to the sound of the guns!)
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To: Hawthorn

Yes, and all capital investments should be deductible in the year they are made.


105 posted on 08/26/2015 8:38:27 PM PDT by freedomfiter2 (Lex rex)
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To: sunrise_sunset
If other countries shut the US out of their markets the US has to respond. Ask Cisco how free China is with Huawei as competition.

I'll sound stupid saying this, but I don't get it.

106 posted on 08/26/2015 9:05:25 PM PDT by wastedyears (Iron Maiden - The Book of Souls, out Sept 4th, 2015)
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To: WilliamIII
For the past few days Mark Levin has joined Cocaine Larry Kudlow in his hysteria over the Smoot-Hawley Tariff and the possibility that The Donald is going to raise it from the dead.

Now Mark isn't an economist so it's possible that he's easily influenced by Kudlow, who isn't an economist either, although he plays one on TV. "Kuddles" got his bachelors in history at college where he also majored in leftwing SDS politics. So before you join the Kudlow-Levin lemming rush over the tariff cliff keep a few things in mind.

The Smoot Hawley tariff debate began in Congress in Spring of 1929 when Herbert Hoover took office. That Fall the stock market crashed (Black Friday) and the Depression began. Smoot Hawley was still being debated. Congress recessed, the Depression deepened, and yet Smoot Hawley still didn't become law until June of 1930.

Now you don't need to be an economist to figure out what came first, The Depression, or the Smoot Hawley Tariff. All you have to do is look at a calendar.

So, you say, maybe Smoot Hawley didn't cause the Great Depression, but it made it a whole lot longer and worse. Because tariffs are bad per se. Right?

Well Smoot Hawley wasn't the first tariff during the 1920s. It was the third, the third in a decade remembered as The Roaring Twenties. The Fordney-McComber tariff was a high tariff and it went into effect in 1922. The Depression didn't start when it passed. The Twenties roared.

In the 1920s foreign trade accounted for something like 6% of GNP. Not a lot. We made virtually everything we consumed outside of bananas and coffee. Tariffs may have reduced or altered trade, and hurt some and benefited others, but they didn't kill the economy.

Smoot Hawley Tariff

107 posted on 08/26/2015 9:14:48 PM PDT by Pelham (Without deportation you have defacto amnesty)
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To: WilliamIII

Kudlow talks like our trade imbalanced driven economy is currently doing fine.


108 posted on 08/26/2015 9:15:29 PM PDT by VideoDoctor
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To: Bryanw92
Do they really think that Trump doesn’t understand economics?

Finance and economics are two totally different things.

109 posted on 08/26/2015 9:17:33 PM PDT by eddie willers
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To: RC one

“Shipping our manufacturing jobs to foreign countries is not fine and not desirable.”

Well that’s labor arbitrage anyway, although the usual suspects will keep insisting it’s free trade.


110 posted on 08/26/2015 9:20:38 PM PDT by Pelham (Without deportation you have defacto amnesty)
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To: Hawthorn

“Careful and pathbreaking research by Milton Friedman showed that the fault lay with the Federal Reserve system’s mistaken monetary policy.”

Well he and Anna Schwartz said it was the Fed’s failure to act, a paralysis made worse because their leader died on the eve of the Depression and they couldn’t decide what to do. So they stood pat as thousands of banks failed with a resulting collapse of the money supply.

One third of American banks failed 1930-33 and one third of the money supply simply evaporated. Depositors were wiped out too because we had no FDIC at that time; Friedman called the creation of the FDIC the most important legislation to come out of the Depression.

Bernanke was a student of Friedman and Schwartz’s study of “The Great Contraction” and was worried that the collapse of the housing bubble could take the banking system down with it, in a replay of the 1930s. TARP and some other policies were intended to keep banks from going bankrupt as mortgage paper defaulted.


111 posted on 08/26/2015 9:32:47 PM PDT by Pelham (Without deportation you have defacto amnesty)
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To: Georgia Girl 2

“In 1970—still a Democrat—Kudlow joined Joseph Duffey’s “New Politics” senatorial campaign in Connecticut. Duffey was a leading anti-war politician during the Vietnam war era. Kudlow, working with Yale University student Bill Clinton as well as many other rising young Democratic students, was known as a “brilliant” district coordinator.

“Kudlow worked on the U.S. Senate campaign of Joseph Duffey, along with Bill Clinton, John Podesta, and Michael Medved, another future conservative, and in 1976 he worked on the U.S. Senate campaign of Daniel Patrick Moynihan, along with Tim Russert, against Conservative Party incumbent James L. Buckley, brother of William F. Buckley, Jr.”

https://en.wikipedia.org/wiki/Lawrence_Kudlow


112 posted on 08/26/2015 9:41:45 PM PDT by Pelham (Without deportation you have defacto amnesty)
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To: Taxman

Putting aside Fair Tax for a minute, I can’t see trading with enemy countries, like Red China.

However, I’m not against Free Trade with FREE countries.


113 posted on 08/26/2015 10:05:19 PM PDT by Sun (Pray that God sends us good leaders. Please say a prayer now.)
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To: Reeses

there are always outlier cases....and any reasonable person is open to that...like Reagan, but he was clearly in favor of free and open trade in general.


114 posted on 08/26/2015 11:23:33 PM PDT by C. Edmund Wright (WTF? How Karl Rove and the Establishment Lost...Again)
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Comment #115 Removed by Moderator

To: central_va

Name one.


116 posted on 08/27/2015 12:05:16 AM PDT by 1rudeboy
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To: central_va

That would make Trump a Marxist. Not very likely.


117 posted on 08/27/2015 12:07:20 AM PDT by 1rudeboy
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To: Georgia Girl 2

Get in touch with your economic-totalitarian side and call them “enemies of the state.” Then send them off to the Gulag.


118 posted on 08/27/2015 12:11:32 AM PDT by 1rudeboy
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To: WilliamIII

Most people critical of Trump haven’t spent the time listening to the words coming directly out of his mouth.


119 posted on 08/27/2015 1:50:55 AM PDT by jq2
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To: Cicero
In fact either Hoover or FDR did much either way except sign legislation. Yes, FDR proposed many things that when Congress got hold of them became disasters that grew the Gub'ment Beast tenfold but it is Congress that did the deed. FDR just urged them to do it and they listened.

The POTUS does not write actual legislation, he can propose it but some lonely Congressman most take up the cause when it comes to spending money on new things and if no one in Congress does then the POTUS can stand around and complain but that is about it unless he can get his goal accomplished by ordering a FEDERAL AGENCY to do the deed.

120 posted on 08/27/2015 2:02:08 AM PDT by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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