Posted on 06/22/2019 5:42:43 AM PDT by Kaslin
President Trump’s barrage of tariffs could blow up our economy in a way not seen since Congress passed the 1930 Smoot-Hawley Tariff Act. We know how that ended. It took World War II to get us out of the worst depression our nation ever faced.
The analogies between then and now are striking. Overwhelmingly, economists opposed the tariffs in 1930. Today, Peter Navarro, who serves in the White House, is the only economist I know of who thinks tariffs are a good idea. And last week he suggested we pull out of the World Trade Organization (WTO), despite the fact the U.S. helped create it and the WTO has mostly sided with the U.S. in resolving trade disagreements. Navarro wants to build an economic fence around the U.S. with unprecedented isolationism.
In 1930, trade was a tiny percentage of our GDP. Today, it represents more than 27%. Going isolationist in 2019 would gut many of our biggest companies and exporters.
Why? Because we not only have global supply networks, but when we sell globally, countries - some of them our biggest customers - retaliate.
China has already blocked U.S. agriculture exports and held American cars on Chinese docks. It is reportedly considering blocking rare earth mineral exports to the U.S. and blacklisting companies. In 1930, Congress put tariffs on thousands of products, countries retaliated with similar tariffs, and the world economy spiraled downward into a dust bowl of poverty.
As the president and his administration build an economic fence around the nation - threatening a healthy economy - congressional power erodes. President Trump’s actions isolate us from trade with the 95% of the global population that does not live in the U.S. Meanwhile, as we escalate disputes with our largest trading partners, economic warning signs pile up. The market is increasingly volatile. Investors are running for cover. Consumers are beginning to feel the tariff bite. Aggressive trade wars are hastening the end of one of the strongest economies in U.S. history
History will judge this era harshly. The next recession will not be just the “Trump Recession” - it will be all of ours to own and survive. We must change course, so tomorrow doesn’t bring a full-blown depression.
Gary Shapiro is president and CEO of the Consumer Technology Association (CTA)™, the U.S. trade association representing more than 2,200 consumer technology companies, and a New York Times best-selling author. He is the author of the book, Ninja Future: Secrets to Success in the New World of Innovation. His views are his own.
As long as it’s an even playing field we don’t need tariffs. It is not an even playing field
Of course, FDR helped to extend the depression, just as Obama helped extend the "Great Recession."
BTW, What kind of educational background does this guy have?
Exactly
Yeah, well, not too impressed with a lot of other economists - e.g. Krugman. There's a very big difference between theoretical economists and those doing business in the real world.
These people are so tiring. Smoot Hawley. Smoot Hawley. That’s all we hear. This ain’t the 1930s. Its 2019. And by the way it’s TWENTY NINETEEN. Not Two thousand nineteen. You don’t hear people say back in one thousand nine hundred seventeen that we got into WW1. Do you? Get with the program.
It never has been. Free Trade is an oxymoron.
“As long as it’s an even playing field we don’t need tariffs. It is not an even playing field.”
Agreed. You wouldn’t go into a fight as a boxer and be OK with it when you find out the other guy laced up with plaster of Paris in his hand wraps and thus in his gloves. Competition is only fair when people, or nations, don’t cheat.
Shapiro holds a law degree from the Georgetown University Law Center. He is a graduate of the Binghamton University, where he majored in economics and psychology.[citation needed]
BU Econ. AOCs alma mater
“As long as it’s an even playing field we don’t need tariffs. It is not an even playing field”
Ask the free traders why these “free trade” agreements are thousands of pages in length and supplemented with thousands of more pages of rules and regulations. In addition they require large bureaucracies to administer as well as administrative panels to penalize or reward companies. These agreements have nothing to do with “free trade”. They are managed trade agreements spelling out special favors for specific countries, companies, markets and industries.
One more thought for the free traders. In 1865, the United States economy was in ruin from 4 years of Civil War. European powers dominated the world economy. From 1865 to 1900 the United States had the highest tariffs in its history. During that 35 year period the US transitioned from economic ruin to the greater industrial power on the planet.
Over the last 30 years China has grown from a third world economy to the world’s second largest economy. During this period it has pursued mercantilist trade policy protecting its domestic market from foreign competition while exploiting the open market free trade policy of the United States.
During the 18th and 19th century Great Britain had the leading industrial economy. It also pursued a mercantilist trade policy protecting its domestic economy while using its military and navy to maintain an empire within which it carefully controlled trade.
Academics, politicians, and globalists continuously talk about the benefits of free trade. Where is the example in the modern era of an economy that grew from economic deprivation to a globally dominant force in three decades by eliminating all trade barriers and inviting other nations to compete with its domestic industries while restricting access to their home markets? There is none.
AOC went to Boston University.
Trump isn’t an isolationist.
This is a crap article based on a false premise.
The Debt and Deficit is the problem. Throw in freetraitors and open border lovers.
“The market is increasingly volatile.” What market is he talking about? It can’t be the stock market. Seems to me there is relatively little volatility. Maybe I’m missing something.
“Investors are running for cover.” Sure doesn’t seem that way.
“Consumers are beginning to feel the tariff bite” I’m not feeling any tariff bite, as far as I can tell.
“Aggressive trade wars are hastening the end of one of the strongest economies in U.S. history” Look outside. The sky is falling.
Chicken Little is clucking the line he’s paid to cluck.
Another idiot with severe TDS syndrome who hates our President and Americans while pretending to be a conservative.
The old smoot hawley fable
Binghamton vs Boston for AOC.
President Trump’s actions are trying to ensure that we even have an economic future
Exactly
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