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Free Trade Fact of the Day

Posted By Conn Carroll On April 30, 2008 @ 11:12 am In International | Comments Disabled

In his latest column [1], radio talk show host Tom Morgan takes us down memory lane to explain why more, not less, free trade is needed now that the economy is struggling:

Some politicians propose moves that could plunge us into another Great Depression. If you think I exaggerate, take some time to read about the last one. One of the biggest mistakes that pushed us into it was when we stifled free trade with other countries. In 1930 Congress passed the Smoot-Hawley Tariff Act. President Hoover signed it.The act was meant to protect us from foreign competition. Tariffs would protect American workers and industries. They would keep us from shipping American jobs abroad. They would protect us from the ravages of globalization. As soon as we erected tariffs, other countries retaliated. Our tariffs kept their products out. Theirs kept ours out. World trade shrunk like a prune overnight. The act was a disaster.

Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2008/04/30/free-trade-fact-of-the-day-39/

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[1] latest column: http://www.tomasinmorgan.com/index.php?option=com_content&task=view&id=114&Itemid=27

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