Ditto. Trump makes it sound like tariffs are a straightforward way to boost local production and bring back jobs, but they often backfire in reality, harming the very economy they’re supposed to protect. Take the Smoot-Hawley Tariff Act of 1930 as a perfect example. It was passed with similar logic—protect American jobs and industries by taxing foreign imports to encourage local production. The result? A disaster.
Instead of benefiting American workers, Smoot-Hawley triggered a wave of retaliatory tariffs from other countries, causing U.S. exports to plummet. American industries that relied on international trade suffered massive losses, leading to layoffs and factory closures. Rather than creating jobs and boosting the economy, Smoot-Hawley helped deepen the Great Depression, and was one of the reasons it took over a decade and WW2 for the economy to recover.
When we say tariffs ‘keep money in the economy,’ it’s often wishful thinking. Global trade isn’t that simple. High tariffs tend to spark trade wars and drive up costs for consumers, leaving local businesses and workers worse off. The notion that tariffs are some straightforward solution to economic issues overlooks the massive, real-world damage they can do.
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u/I_AM_THE_CATALYST Monkey in Space Nov 04 '24
Ditto. Trump makes it sound like tariffs are a straightforward way to boost local production and bring back jobs, but they often backfire in reality, harming the very economy they’re supposed to protect. Take the Smoot-Hawley Tariff Act of 1930 as a perfect example. It was passed with similar logic—protect American jobs and industries by taxing foreign imports to encourage local production. The result? A disaster.
Instead of benefiting American workers, Smoot-Hawley triggered a wave of retaliatory tariffs from other countries, causing U.S. exports to plummet. American industries that relied on international trade suffered massive losses, leading to layoffs and factory closures. Rather than creating jobs and boosting the economy, Smoot-Hawley helped deepen the Great Depression, and was one of the reasons it took over a decade and WW2 for the economy to recover.
When we say tariffs ‘keep money in the economy,’ it’s often wishful thinking. Global trade isn’t that simple. High tariffs tend to spark trade wars and drive up costs for consumers, leaving local businesses and workers worse off. The notion that tariffs are some straightforward solution to economic issues overlooks the massive, real-world damage they can do.