TIL About the Smoot-Hawley Act, Which was the 20% Across the Board Tariff That Deepened the Great Depression and Resulted in the Largest Senate Seat Loss in History

realitista@lemm.ee · 22 hours ago

TIL About the Smoot-Hawley Act, Which was the 20% Across the Board Tariff That Deepened the Great Depression and Resulted in the Largest Senate Seat Loss in History

WraithGear@lemmy.world · 15 hours ago

Yea no matter how you slice it, there are no good use of tariffs, and if one were to insist, then it would only be like just barley enough to push up the price above parity, and only on very select items. But then if the other country does it back it goes in favor to the nation that is more industrial.

Initiateofthevoid@lemmy.dbzer0.com · edit-2 14 hours ago

But then if the other country does it back it goes in favor to the nation that is more industrial.

Correct! That’s what Cavallo et al found when the Trump administration tariffed China in 2018. US profit margins decreased on both imports AND exports, while China’s remained largely unchanged.

According to their analysis, American tariffs hurt Americans more than literally anyone else.

Fun fact, the Trump Administration cited Cavallo et al as supporting evidence for their tariff calculations.

TIL About the Smoot-Hawley Act, Which was the 20% Across the Board Tariff That Deepened the Great Depression and Resulted in the Largest Senate Seat Loss in History

TIL About the Smoot-Hawley Act, Which was the 20% Across the Board Tariff That Deepened the Great Depression and Resulted in the Largest Senate Seat Loss in History

Smoot–Hawley Tariff Act - Wikipedia

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