In October of 1929, the financial markets crashed, but many economists attribute the cause of the Great Depression that ensued, not to that crash but to an incorrect remedy, namely the Smoot-Hawley Tariff Act of 1930. That piece of legislation, which imposed a penalty on imported goods, led to a very temporary increase in production, in the U.S., but which so disturbed the global market that had been built up that both the economies of Europe and the U.S. went from a recession into a depression which lasted a decade and was a factor in causing WW II.
While the U.S. economy is in much better shape than it was in 1930, our web of interconnection with the global economy is so complicated and complex, now, that we just don't know the effect of imposing a tariff on a trading partner's goods in order to force a unilateral acceptance of a decision in an unrelated matter.
Trump has failed numerous businesses, and filed bankruptcy six times. That clearly shows that he doesn't understand the domestic business market. Why would anyone believe that he understands the world economy any better?
ReplyDeleteThe original comment assumes the most basic knowledge of history on the part of trump supporters. Even Republican strategist/operator Steve Schmidt is SHOCKED at the lack of civic knowledge on how are government is designed to work, rendering the majority of executive orders which were signed this past week as as unadulterated show productions ... most, if not unconstitutional, having no teeth! "Doesn't understand the business market?" The grifter-in-chief or con man-in-chief himself lacks the self-awareness that his ignorance and ineptitude are exposed every time he opens his mouth to utter a word. Some role model ... NOT. Embarrassing, indeed!
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