The Smoot-Hawley Provision

Henceforth, this will be referred to as the Smoot-Hawley provision of the stimulus package. (Reference here.)

UPDATE: Douglas Irwin writes in the NYT:

When the United States imposed the Smoot-Hawley Tariff in 1930, it helped set off a worldwide movement toward higher tariffs. When everyone tried to restrict imports, the combined effect was a deeper global economic slump. It took decades to undo the accumulated trade restrictions of that period. Let’s not make the same mistake again.

One response to “The Smoot-Hawley Provision

  1. It was interesting to see how quickly major trading partners picked up on this, which suggests that if we hope to avoid retaliation, it won’t be because we slipped this one by in the dark of night.

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