Trump tariffs, trade war repeating Great Depression mistake – Business Insider

Trump tariffs, trade war repeating Great Depression mistake – Business Insider

Over 1,100 leading economists sent a letter to President Donald Trump urging the president to reverse course on recent trade tactics — lest the US repeat one of the biggest mistakes of the Great Depression.

The letter, organized by the conservative-leaning National Taxpayers Union, warned that recent tariffs and trade protectionism were harmful to the economy. The economists cited a 1930 letter that warned Congress against passing the Smoot-Hawley Act, a large package of tariffs that many studies cite as a major reason for the depth of the Great Depression.

“Congress did not take economists’ advice in 1930, and Americans across the country paid the price,” the letter says. “The undersigned economists and teachers of economics strongly urge you not to repeat that mistake. Much has changed since 1930 — for example, trade is now significantly more important to our economy — but the fundamental economic principles as explained at the time have not.”

via Trump tariffs, trade war repeating Great Depression mistake – Business Insider