[rcocean]

Being curious I looked up the numbers. In 1948 GNP was $250 billion. Exports were $15 billion of which $5 billion was paid for directly or indirectly by Uncle Sam. Imports were $5 billion. Imports/Exports in 1938 were about $3 billion dollars each. Exports in 1948 only accounted for 1/15 of the US economy. By Comparison the US Federal budget for 1948 was $21 billion.

As you can see the idea that we went from depression to prosperity from 1938 to 1948 due to "Free Trade" is absurd. Exports went up by $10 billion while GNP went up from $100 billion to $250 billion. It also shows that exports were such a small percent of GNP that Smoot-Halley did not "cause" the depression or even make it worse.

[Austin Willard Wright]

Re-read what I said. I never claimed that free trade created prosperity after 1938. You asked why trade increased and I provided a MFN as a reason. That's all.