To: bvw
The last thing we need is tariffs. Tariffs are one of the things that contributed to the Great Depression. If the government would have stepped back and allowed the market to adjust instead of passing Smoot-Hawley, instituting wage and price controls/supports, and increasing taxes, the depression would have been deep and probably painful but also of a shorter duration.
I agree cutting taxes would help; it's the only thing the government can do any more. The ability to cut spending, like it should, is not an option after LBJ put about 70% of the budget in the non-discretionary category. If you look back to Harding and the depression of 20-21 (I think), he cut taxes AND the budget 25%. Depression was over in about 12 months.
To: austrianecon
Disagree about tariffs -don't think that they added much one way or the other to the Great Depression, but are a convenient place for people supporting big Government to place the blame. Dynamics are different today -- in the 20's WE were China in industrial production -- tariffs then had as much negatory effect as any positive. Today, we are deficient and need import tariffs to allow new growth of basic industries and manufacturing. I only hope the old domestic dinsosaurs still not yet dead don't eat the most of any new tariff foliage.
27 posted on
12/10/2002 8:15:11 AM PST by
bvw
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