Wednesday, October 01, 2008

Learn from History

The depression became the Great Depression because Congress got stampeeded into passing the Smoot-Hawley Tariff Act and made things worse. From Wikipedia (emphasis MINE)

The Smoot-Hawley Tariff Act (sometimes known as the Hawley-Smoot Tariff Act)[1] was an act signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels. In the United States 1,028 economists signed a petition against this legislation, and after it was passed, many countries retaliated with their own increased tariffs on U.S. goods, and American exports and imports plunged by more than half. In the opinion of most economists, the Smoot-Hawley act was partially responsible for the severity of the Great Depression.[2][3]
Now we have the Bailout which is opposed by Economists... don't let them repeat the mistake again.

Trivia... it was the Hawley-Smoot Tariff Act which was the dry boring history that Ben Stein was talking about as a Teacher in Ferris Bueller's day off, which is why I knew about it.

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