Ben Stein was on the Fox Business Network the other day getting a reminder of the scene in "Ferris Bueller's Day Off" in which his character attempted to lecture students about how the Smoot-Hawley Tariff Act worsened the great depression. So wouldn't the same theory apply today with President Trump's tariff threats?
Not quite. Watch his response in this Youtube video.
In summary, the cold war may be over, but there is real danger of conflict. In certain categories we do need to protect our own industries. Steel and aluminum are vital materials to the United States. And we shouldn't cede them to countries that could be enemies. Furthermore, the cost to American consumers won't be that much. Listen to it at the link above.
Meanwhile, Tim Carney points out that while the grand view that the theory that free trade "improves the welfare of all nations involved in the trading" is likely true, it ignores the hardship inflicted on those involved in the industries that shut down. For many of the individuals affected, there's no recovery. He made the case in Free-traders oversimplify their case against tariffs, to no-one's benefit.
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1:50 PM 3/3/2018
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