Posted on 12/23/2016 5:08:47 PM PST by Crucial
Few areas of historical research have provoked such intensive study as the origins of America’s Great Depression. From 1929 to 1933 America suffered the worst economic decline in its history. Real national income fell by 36 percent; unemployment increased from 3 percent to over 25 percent; more than 40 percent of all banks were permanently closed; and international investment and trade declined dramatically.
The dimensions of the economic catastrophe in America and the rest of the world from 1929 to 1933 cannot be captured fully by quantitative data alone. Tens of millions of humans suffered intense misery and despair. Because of this trauma the Great Depression has dominated much of the macroeconomic debate since the mid-twentieth century.
and Smoot-Hawley did not cause the great depression either.
This is attributed to Al Gore?
So if China sells everything to us and we impose tarrifs, they look at their growth rate and think, “sure we can survive a few percentage point drop in growth but I bet the US will hurt more.”
Inflation will be the result of a tarrif war.
Hit piece on Trump and uses fake historical facts.
Unless the authors knew Trump’s plans and subsequent election in 2012 when this was written...
The banks of 2008 were not the same as 1928. The money shoveled at the banking system of 2008 was invested into pushing bubbles that mainly benefited stocks.
I think the imbalance between trade FROM China, and the trade to China, is enormous.
Huge.
China is now for the very first time in over one entire generation, looking at an America saying it is time to play fair.
China has NEVER played fair.
Maybe they will.
We will see.
China was the good guys, back in the last global conflict. They and us, fought the Japanese and suffered greatly from that conflict.
The thing is, now things are MUCH different. China is now a fully developed country.
They produce as much (more actually) than we do. And the trade balance is massively unbalanced.
Trump is the very first politician, in either party, who is saying America needs to produce in America once again.
That is long, long overdue.
China may play well, and this may work itself out, and things will be wonderful.
Or China may insist on continuing to cheat America on the trade front.
Their choice.
Trump will decide, now in 26 days.
https://fee.org/articles/the-great-depression-according-to-milton-friedman/
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