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To: DannyTN

Trying to summarize Friedman as only a Free Trade advocate is like saying that Ted Nuegent plays guitar. It doesn’t tell but a little of the story.

Conservative economics is a broad spectrum and includes many more than Friedman. Fellow economists have known for years that Free Trade alone produces very uneven results — See the Mystery of Capital by Hernando De Sota if you want some insight.

At tarriff controled economy example that should be discussed is Smoot Hawley in the time of Hoover and on into the FDR era. It took years to figure out that this was an economy killer.

We are probably past the era where our economy is so dominate that nothing can withstand its force, which is what protected us against the Japanese in the 80s — they tried to eat us and choked.


12 posted on 08/06/2013 4:44:48 PM PDT by KC Burke (Officially since Memorial Day they are the Gimmie-crat Party.)
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To: KC Burke
Smoot Hawley wasn't passed until 2 years into the Great Depression. And the initial results were a surge in employment. Unfortunately, the banking sector was already unstable from the stock market crash and went under about 6 months after Smoot Hawley was passed. It would have gone under anyway.

Exports were only 4% of our GNP at the start of the Great Depression. Volume of exports dropped less than 50% but because of the depression the $ value change was greater as prices world wide dropped.

The U.S. industrial production dropped 46%. There is no way that a 50% reduction in exports which were just 4% of GNP caused that.

We had 22% import tariffs throughout the roaring 20's and it didn't seem to hurt our economy. We've had 15% or greater through the history of the country until 1960.

14 posted on 08/06/2013 4:52:56 PM PDT by DannyTN
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To: KC Burke
Smoot Hawley wasn't passed until 2 years into the Great Depression. And the initial results were a surge in employment. Unfortunately, the banking sector was already unstable from the stock market crash and went under about 6 months after Smoot Hawley was passed. It would have gone under anyway.

Exports were only 4% of our GNP at the start of the Great Depression. Volume of exports dropped less than 50% but because of the depression the $ value change was greater as prices world wide dropped.

The U.S. industrial production dropped 46%. There is no way that a 50% reduction in exports which were just 4% of GNP caused that.

We had 22% import tariffs throughout the roaring 20's and it didn't seem to hurt our economy. We've had 15% or greater through the history of the country until 1960.

15 posted on 08/06/2013 4:52:56 PM PDT by DannyTN
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