Quote:
Originally Posted by brasil
A lot more than the messenger has changed. The world has not seen these kinds of tariffs since the early 1930's, and you know how that worked out.
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Then that begs the question once again. Why were the Dems all in for tariffs just a few short years ago??
Also, keep this in mind:
“Smoot-Hawley is often blamed for
helping prolong the Great Depression. The stock market had already crashed in 1929,
the year before Smoot-Hawley was signed into law, but the tariffs deepened the depression, sending stocks even lower.”
Tariffs were not the “cause” of the Great Depression.
There’s also this:
https://en.m.wikipedia.org/wiki/Caus...at_Depression#
“Current mainstream theories may be broadly classified into two main points of view.
The first are the demand-driven theories, from Keynesian and institutional economists who argue that the depression was caused by a widespread loss of confidence that led to drastically lower investment and persistent underconsumption. The demand-driven theories argue that the financial crisis following the 1929 crash led to a sudden and persistent reduction in consumption and investment spending, causing the depression that followed. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money therefore became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in demand.
Second, there are the monetarists, who believe that the Great Depression started as an ordinary recession,
but that significant policy mistakes by monetary authorities (especially the Federal Reserve) caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms.”
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