Protectionist Tariffs 101
Tariffs Through Time
My Dearest Defenders of Justice,
I hope this message finds you as well as can be in the face of your dwindling 401ks, being obliterated only to stroke the ego of our would-be king. Currently, many of our leaders, particularly within the Republican Party, defend tariffs as a necessary tool to protect American industries, create jobs, and level the playing field against unfair foreign competition. They argue that imposing tariffs is essential to safeguarding national security and curbing China’s economic dominance. This week’s hot topic will be slowly and methodically ripping apart these arguments for the flimsy nonsensical rants of frightened children that they are.
Before we dive into the nonsense that is this corrupt administration's attempt to defend their concepts of an economic plan, I find it essential, to take a brief step back into history. After all darlings, It is only through understanding the past that we can truly appreciate the gravity of what is happening before us. This, my dear ones, is a story that spans centuries, a tale of trade, power, and the human cost of protectionism.
America's most notable foray into protectionist tariff policy was the Smoot-Hawley Tariff Act of 1930 that became a dark symbol of economic miscalculation and international discord. In an attempt to protect American jobs and industries during the Great Depression, Congress imposed tariffs on over 20,000 imported goods. The idea was simple: if we make foreign goods more expensive, Americans will buy domestic products, and jobs will be saved. However, the results were anything but simple.
As tariffs on foreign goods rose, so too did retaliatory measures from trading partners around the globe. What followed was nothing short of an economic catastrophe. The Smoot-Hawley Act led to a sharp decline in international trade, worsening the Great Depression and exacerbating the suffering of millions. By raising tariffs, America, instead of insulating itself, effectively isolated its economy. Nations responded by slapping tariffs of their own, each one magnifying the damage, creating a spiral of economic contraction.
But the Smoot-Hawley Tariff is not the only example where tariffs have ignited disastrous consequences. Throughout history, we’ve seen numerous instances where trade barriers—whether in the form of tariffs, quotas, or embargoes—have stifled economic growth and deepened political tension.
Consider the trade wars of the 19th century. In the 1800s, Britain imposed tariffs on American cotton, hurting the southern states that relied on cotton exports. Likewise, the United States slapped retaliatory tariffs on British goods, a move that strained relations between the two nations for decades. Fast forward to the early 20th century, and the protectionist policies of the time contributed to the financial woes that led to the Great Depression, as mentioned above. In the decades that followed, nations increasingly sought to move toward free trade to avoid the pitfalls of protectionism, culminating in the creation of the General Agreement on Tariffs and Trade (GATT) in 1947, which would later become the World Trade Organization (WTO).
Perhaps you are asking yourself, why does this history matter now? What is happening today with tariffs echoes the very mistakes of the past, but this time, we should be looking to our history to guide our future actions. In recent years, we’ve seen the re-emergence of tariff battles, particularly between the United States and China. The current administration, invoking the memory of past protectionist policies, has sought to impose tariffs as a means to force China into trade negotiations—aiming to curb intellectual property theft, industrial espionage, and other grievances. But while the motivations may seem justifiable on the surface, we must be cautious of repeating the mistakes of our ancestors. Should the odious orange infant situation in the people’s house have any doubt, he need look no further than the “hoover towns” of a bygone era, the president for whom they received their name.
Today, as we consider the role of tariffs in global trade, we must remember the lessons of the past. Tariffs are not a silver bullet. They can be an effective tool in some circumstances, but they also carry risks—risks of global backlash, of rising costs for consumers, and of harm to industries that rely on international markets. It’s vital, therefore, that we ask ourselves: What are the unintended consequences? Are we truly serving our interests, or are we opening the door to a new round of economic warfare?
In the coming letters, we’ll dive into the specifics of the current tariff situation, the arguments for and against these policies, and what it means for ordinary citizens. But for now, my dear defenders of liberty, let us take heed of the wisdom passed down from history. The road to trade wars is paved with good intentions (though it is this author’s opinion that our current leaders do have good intentions but rather selfish ones). Regardless of their intentions, they must be weighed against the broader impact on our economy and the working class Americans who will be bearing the brunt of these archaic ideas.
Until then, let’s remain vigilant, educated, and engaged. For the pen is mightier than the sword, but our minds are the sharpest weapons of all.
Until the next bold move,
Lady LiberTea
Editor-in-Chief of Lady LiberTea
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