Friday, July 27, 2018

"Tariffs Are Rigged Against Them"

"In the 1920s, Republicans returned to power and resumed their protectionist agenda, but when crop prices fell, Midwesterners again turned on the party. Chastened by Taft's experience, President Herbert Hoover promised to aid farmers by raising agricultural tariffs. The Smoot-Hawley Tariff Act of 1930 did protect crops, but it also radically increased the duties on manufactured goods, provoking a trade war with Europe at the worst possible time. As the Great Depression spread misery across the country, voters blamed Hoover's tariff. In 1932, they elected FDR in a landslide and pummeled the GOP.
"Reduced to a perennial minority, Republicans finally abandoned their protectionist doctrine and embraced free trade. The ferocious tariff debate that had dominated American politics since the nation's founding slipped into the shadows, remembered only by historians and economists.
"Until Donald Trump."

At The Atlantic, Michael Wolraich discusses taxes on imported goods, past and present.

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