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NW Iowa | I honestly am trying to determine how to prepare for the next 5 years. Can anyone provide a thoughtful explanation of why we will not follow history once again?
Thanks for OntarioCanuck for raising awareness on this.
https://en.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act
Hoover signed the bill against the advice of many senior economists, yielding to pressure from his party and business leaders. Although intended to bolster domestic employment and manufacturing, the tariffs instead exacerbated economic difficulties. Many of America's trading partners retaliated with tariffs of their own, leading to a sharp decline in global trade. U.S. exports plummeted, worsening the depression rather than alleviating it. Economists and historians widely regard the act as a policy misstep that deepened the global economic crisis of the 1930s. It contributed to a broader shift in U.S. trade policy, ultimately paving the way for more liberal trade agreements, including the Reciprocal Trade Agreements Act of 1934.
The Smoot-Hawley Tariff remains a cautionary example of protectionist economic policy, frequently cited in debates over the risks and consequences of trade restrictions in modern economic discourse.[3] Excluding duty-free imports, the tariffs under the act were the second highest in U.S. history, after the Tariff of 1828.[4]
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Why will it be different this time?
