Hey! Let’s bring on another Great Depression!
The First Great Depression was so much fun! Let’s bring on Great Depression II!
If we close our domestic market to foreign goods, we’ll spark a trade war that will insure that this recession turns into another Great Depression that will last for a generation. Folks, we’ve done this before, and exactly this way!
Smells like Smoot-Hawley
by Ed Morrissey
“As if the Democratic Porkfest Bill didn’t do enough damage on its own to the long-term prospects for the American economy, the Washington Post reports that it could set off a trade war that would bring the global economy crashing, too. Democratic protectionists loaded up the bill with “Buy American” clauses that shut out foreign producers of steel and iron. Just as in the Depression, however, that will force other nations to close their markets — which will virtually recreate the Smoot-Hawley fiasco that made the Depression exponentially worse…”
“If we touch off a trade war, which this will almost certainly do as it violates all of our WTO and bilateral trade agreements, other markets will close their doors to American products, such as cars and technology. Instead of closing our trade gap, we will explode it, and even those oil imports could get retaliatory tariffs from our two closest trading partners, Canada and Mexico, our two largest foreign suppliers of crude.”
“America doesn’t need a trade war at this moment in time. We need to ensure our access to as many foreign markets as possible. Protectionism now will take us down a primrose path that we have traveled before, and the end result will be bread lines and 25% unemployment, and worldwide misery.”
Read more here.
I hope you’ve got your food storage, folks, because I think you’re going to need it.