Congress passes Smoot Hawley again

Started by Riversider

about 14 years ago

Posts: 13573

Member since: Apr 2009

Discussion about

http://thehill.com/blogs/floor-action/house/214409-house-passes-bill-allowing-anti-subsidy-duties-against-non-market-countries The House on Tuesday easily approved legislation that would allow the Commerce Department to continue applying anti-subsidy duties to the products of non-market economies such as China. The bill, H.R. 4105, is a response to a December court ruling stating that Commerce... [more]

Response by Riversider

about 14 years ago

Posts: 13573

Member since: Apr 2009

#1 Smoot-Hawley Redo

The Congressional Budget Office (CBO) is obligated to review and “score” the financial consequences of any proposed legislation. It came out with a report on H.R. 4105. The title page of the Bill:

This legislation is about tariffs on China. The CBO concluded that the US Treasury will collect $160 billion over the next ten years if the law is passed. That may sound good to some; I see it as a disaster in the making. If H.R. 4105 passes, it will cost the country Trillions. The history books say that is so.

H.R. 4105 “Applies the duty provisions of the Tariff Act of 1930.” The 1930 legislation that H.R. 4105 is relying on has a different name in the history books. It is called the Smoot-Hawley legislation. It was the dumbest legislation that could have been passed. It insured that America would remain stuck in a depression for another four years.

Smoot-Hawley worked as intended. From 1930 to 1934 imports fell by 65%. But damn near every trading partner, including England and Canada, retaliated by putting up their own tariffs. The depression spun around the globe as a result.

http://brucekrasting.blogspot.com/2012/03/on-fx-and-notes-from-dc.html

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Response by huntersburg

about 14 years ago

Posts: 11329

Member since: Nov 2010

I like when women ask me to a Smoot Hawley dance.

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