Debunking The "Smoot-Hawley Caused The Great Depression" Myth

Vanity | February 4, 2009 | UCFRoadWarrior

[nyconse]

Good night...nice discussion.

[nyconse]

I would not disagree... I think the condition of your economy dictates the solution...in times of inflation, tax cuts and balanced budgets are enormously helpful. In times of deflation, you need to spend in order to re-inflate the economy. Roosevelt did this except for his attempt to balance the budget which drove unemployment higher. Sweden which followed a pure Keynesian approach was the first to climb out of the great depression. This approach would have been a disaster in the early 80’s when Reagan basically saved the economy with supply side economic principles.

[Will88]

Trade is often used as a reward for those countries we like or want something from...a tool for foreign policy with no consideration of the effect on the economy or American business.

Ain't the the truth. I've heard it said that our trade policy is our number one foreign aid program. Lot's of truth to that, and it accounts for some significant part of our ever growing trade deficit, and loss of industries.

[nyconse]

Agreed...I wish Obamam would support US business, but I fear like all the modern presidents despite his big trade talk that won the Mid West, he is a globalist.

[nyconse]

Do you know how many times this clip was played in Ohio?

[nyconse]

The rise of fascism caused a global war...we almost became fascist in this country courtesy of our very rich financiers like JP Morgan, Maguire and possibly Prescott Bush...did you know they tried to overthrow the government (Roosevelt) and install a dictator? Read up on General Butler who basically was offered the position of dictator in chief and instead turned the conspirators in to Congress. He was a Marine...you can always count on Marines...Semper Fi and good night.

http://coat.ncf.ca/our_magazine/links/53/dupont-by_colby.html

[hedgetrimmer]

There’s that ‘consumer’ thing being more important than that citizen thing.

If you respect the Constitution then you’ll respect this:
Article 1 section 8
To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;

The preamble is a preamble. The blessings of liberty doesn’t mean anarchy, which is what you say you want. Liberty means responsibility, after all.

[Mase]

My comment was for those who think McCain is stupid. He was an abysmal candidate, and a woeful Republican, but he isn't stupid. The leftists said Bush was an idiot and claimed the only reason he got in to Yale and Harvard was because of family connections. Getting in and graduating are two different things. McCain's pedigree may have helped him into the Naval Academy but the fact that he graduated from there, like Bush from Yale and Harvard, should be the first clue that he isn't stupid. At least he told the truth. Obama, instead, promises he's going to create 4 million jobs, or was it 5 million jobs? Has he changed it to 2 million now? I lose track. But McCain is stupid......

[Mase]

There’s that citizen vs. consumer thing again. Can you name a living American who isn’t also a consumer?

[Mr. Silverback]

Excellent post!

[familyop]

I agree very much on the failures of most government spending, including much of the spending during Roosevelt's terms (although it would be sardonically enjoyable to cut a lot of Teddy's trees down). Have a look at how much spending is done now in administrations of both political parties, and especially, where it goes. That's gone from bad to far worse. Let's compare two evils: "forty acres and a mule" to family-busting. Compromises between the political parties do not work. The current trend of socialist and libertine gradualism toward pushing conservatives out of the Republican Party while inviting liberals into the administration of it will be the end of the Party. ...much like the '20s but worse.

Stopping social/welfare spending would be better, but immoral/nonworking methods of competition (corporate-government alliances pushing selective enforcements against smaller businesses) would have to be stopped, big federal law enforcement being the only working method of shutting the local mobs down so far.

[Mr. Silverback]

There was no demand for Communist Chinese products 30 years ago....no one was going around “oohh...I got to have that Chinese dog food”

But the were saying, "I have to have tha new Japanese car" and people were freaking out and calling for tariff hikes then, too.

[Mr. Silverback]

With all due respect to Michael Reagan, he’s forgetting the role of Harley’s successful quality initiatives here. IIRC, a big part of the reason the riceburners were whupping up on Harley was that they were so poorly made that the dealerships had to put cardboard under brand new bikes because they leaked oil already.

[familyop]

"Roosevelt embarked on an antidote to the depression, reluctantly abandoning his efforts to balance the budget and launching a $5 billion spending program in the spring of 1938,"

I agree. And although the indicators did go up between 1934 and 1938 (Smoot-Hawley?), they did fall after 1938. Making steep spending cuts is possible (real cuts, not only smaller increases, as were done during the Reagan years), but those who administer both political parties would rather look at constituent money and noise than votes.

[familyop]

...indicators did physically fall *during* 1938. ...my mistake.

[Mr. Silverback]

Alas, the federal gov’t is tasked with regulating trade, not you. Article 1, section 7.

Yes, but that doesn't mean that the government should not do so in a way that is as consistent with individual freedom of choice as possible. The government's in charge of roads, too, but that doesn't mean they get to hand me a road map and tell me where to drive each day.

[pissant]

They should do so in a way that protects our national security, first and foremost.

[pissant]

Bump

[familyop]

"Bump"

...for the cited table in comment #232? You're most welcome. Do the browser "View," "Page Source," or whatever, save (starting with "Compensation from"), and use it whenever necessary!

[familyop]

...will see if I can find some other economic indicators for the period. Those are better, because they tend to rise before unemployment goes down.