Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (21434)	3/15/2002 7:20:21 PM
From: Ilaine	Respond to of 281500

1.The Smoot-Hawley Tariff established the highest tariff rates in U.S. history, and the sharp rise in tariff rates caused countless nations to retaliate with tariffs of their own. Well, as I have already argued, Smoot-Hawley wasn't much more onerous than Fordney-McCumber, but it was, indeed, slightly worse. I never heard of the Tariff of Abominations, but it doesn't sound good, does it? 2. The Smoot Hawley-Tariff contributed to the instability of the stock market. The argument for this is largely circumstantial. If you read the New York Times for October, 1929, the stock market and Smoot-Hawley vie for above-the-fold treatment on important days. 3. The Smoot-Hawley Tariff was responsible for causing the Great Depression. I think that's a bogus argument. The forces that caused the Great Depression of the 1930s, for the most part, predate Smoot-Hawley. However, look at international trade. The world output of crude steel was 25 million tons lower in 1930 than 1929. The world output of pig iron was 19 million tons lower in 1930 than 1929. The international response was government support in the form of higher duties, direct subsidies, and other forms of assistance, which in turn increased the cost of living and decreased the ability to buy foreign goods. Reduced markets affected all producing countries. I think it's disingenuous to argue that the very effects which tariffs sought to cause "just happened." The very purpose of a tariff is to raise prices. If prices then go up, what's the surprise?

To: craig crawford who wrote (21434)	3/18/2002 12:37:06 PM
From: TimF	Respond to of 281500

consumers get paid a wage do they not? tariffs help to raise wages for the working class. They can help to raise wages in the industry where the tariff is imposed. They reduce real wages overall because other industries that are dependent on the goods from the protected industry have higher costs and thus either higher prices (reducing demand) or lower profits (increaseing incentives to try to find ways to get the job done with lower costs, includeing lower labor costs), and because the prices of goods go up, and thus the same wage buys less goods. free trade is corporate welfare for large multinationals. It may benefit some large multinationals but its hardly welfare. It isn't a special privlage given to these companies, a special protection for them, or a government check sent to them. Its just allowing them to trade freely. It doesn't take away the freedom of others to trade and it helps the overall economy. Tariffs on the other hand are taxes, they are special benefits for specific industries, and they reduce reduce the general wealth and freedom of a country. They do hurt people who have to pay more for their goods. Tim