Seventy-seven years ago today, the U.S. House of Representatives passed the Smoot-Hawley tariff. Seventy-seven years ago tomorrow the knaves in the Senate followed suit, and seventy-seven years ago on June 17th the ludicrous President Herbert Hoover signed it into "law," thus helping to mire the world for years in a Great Depression.If you don't know what the Smoot-Hawley Tariff was, then you need to find out before you next open your mouth to give us your wisdom about depressions, or about "market failure", "underconsumption", "too many imports", protection for local industry, price stability, and other destructive delusions that cause depressions.
Friday, 15 June 2007
(Enter, stage left: The Depression) ...
The boys at Cafe Hayek remember a less happy anniversary for the world than Reagan's clarion call that we celebrated the other day.