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Reply To: US/China Trade War

May 16, 2019 at 10:52 am #1391196

elessar2590

18207xp

There’s way too many causes for the Great Depression to start picking one or two.

Most Economists do not agree it was a major contributing factor. At best it was fuel on the raging bonfire but it didn’t have a massive impact.

“the view held by prominent economists, ranging from University of Chicago Nobel laureate Robert Lucas and Yale economist Robert Shiller to MIT economists Rudiger Dornbush and Stanley Fischer, is that since the foreign-trade sector was only about 7 percent of gross national product (GNP), the tariff (though misguided) could not explain much of this decline.”

That comes from the Foundation for Economic Education which was supported by Mises and Hayek so hardly a pro-Tariff Organisation.

https://fee.org/articles/the-smoot-hawley-tariff-and-the-great-depression/