Tariffs: The Smoot-Hawley Fairy Tale Feb 12, 2011 11:01:14 GMT -6
Post by judes on Feb 12, 2011 11:01:14 GMT -6
Lol I love how people like to pick and chose select pieces of information that they view to support their argument while ignoring the big picture and all other contributing factors. In fact it gets right to the topic of this thread and how the Smoot Hawley fairy tale came about in the first place. By your logic Bobby, since Asia in general (and the rest of the world) has much higher tariffs and other barriers to trade than the US, their economies should be in shambles with no growth at all compared to the US with our comparatively low tariffs. Your logic ignores all other factors that effect economics, like corrupt political regimes, large gaps in the distribution of wealth and incomes that leave little to no consumer demand and human rights in general. It is not as if tariffs can act in a vacuum, but given the right socio-political environment they can help foster productive forms of employment and real wealth creation as is evidenced in the history of the US itself.