Smoot-Hawley Tariff Act: The Next Generation

Home > Economics

Smoot-Hawley Tariff Act: The Next Generation

Monday, September 14th, 2009 | Economics |

During the Great Depression Hoover signed the Smoot-Hawley Tarriff Act:

The Smoot-Hawley Tariff Act was a protectionist act signed by Herbert Hoover, which raised tariffs on 20,000 imported goods into the United States. Hoover signed the law into law on June 17, 1930. The act is thought to have been a major factor of causing the 1930’s Great Depression, and thus Herbert Hoover was largely blamed for the crisis.

Obama apparently thought the Smoot-Hawley Tarriff Act was such a awsum idea during the last depression that he decided to enact tariffs on Chinese steel pipe and tires. Ha ha, China! Take that, you stupid largest foreign holder of U.S. debt!

I want some of what Obama is smoking and/or snorting and/or injecting. A reasonable explanation for Obama’s decision is that he’s paying off the unions that help get him elected.

Tags: obama

3 Comments to Smoot-Hawley Tariff Act: The Next Generation

Mr. Ed
September 15, 2009

What’s the simplistic cause and effect here?
So what?
Will the Chinese suddenly launch missiles in a fit of pique and rage?

Their investments demand that they play along with our wicked imaginary game of “Economy,” lest they go down with us. Because you see, they need us.
Doh.

Les Jones
September 15, 2009

No need to fire missiles. They can just stop buying treasuries.

Sure, they need us, but they also need their balance sheets to add up. They can only loan their biggest customer money for so long before they go bankrupt.

Ed
September 18, 2009

I suspect that the sheets DON’T have to add up.
That’s the whole trick that none of us serfs understand.
Properly adding balance sheets only serve people who care if they add up. They won’t add up and there will be no consequences for the oligarchs — just more wire transfers.