The Economists recalls the web of side-effects from the Smoot-Hawley tariffs to suggest that the felon-in-chief may be doing more than economic harm. This is probably self-evident to readers of this blog, but certainly isn’t self-evident to a great many voters, legislators and cabinet members.
In the flood of tariffs in response to Smoot-Hawley, tariffs on Japanese goods sold in Dutch colonies weakened Japan’s liberals, who were opposed to war. Monetary controls were imposed in response to tariffs, helping to trigger abandonment of the gold standard. And so on.
Perhaps mindful of Godwin’s law, the authors don’t bother to mention that the economic hardship of the Great Depression fostered Hitler’s rise. The fact that in Russia it helped solidify Stalin’s hold on power also goes unmentioned. Authoritarians and demagogues often beefit from economic turmoil. The fact that the U.S. swung toward liberalism later in the Great Depression probably accounts for much of the post-war shape of the world, a world in which, until recently war had become less common than in much of history.
Speaking of “King Dollar”, the authors finally engage in a bit of scary speculation – We’re no longer on the gold standard; we are now on a dollar standard. What happens if some dimwit decides to cut off swap lines just when they’re needed?
India is ginning up its own “belt and road” program, with the annoying but descriptive moniker “India-Middle East-Europe Economic Corridor”. It is intended to compete with China by creating interlocking trade, aid, finance and development relationships. Notice that Europe is in, the U.S. out. Europe includes Russia, naturally.
India has the 5th largest economy by GDP, but isn’t in the top ten by value of international trade. That either suggests opportunity for rapid growth in trade, or a much less attractive partner than either the U.S. or China. As to which is the better view, I got nothin’.
Ivan
The dollar is not doing that well – nor is Brent Oil. They kind of go hand in hand most of the time since oil is traded in dollars. The current price of Brent oil is $70 and profitability for many US fields comes at around $65. How is that “boom” in US oil production going to happen now – even if we give the right to drill away for free. There are already a glut of drilling permits that have not been touched.
Macroduck
The DoD no longer objects to segregation in the workplace:
DoD contractors may now segregate their facilities, apparently in any way they choose – by race, sex, religion, sexual orientation, age height, weight, eye color…
Knock-on effects or unintended consequences – call them what you will The Economists reminds us that the effect of tariffs doesn’t end with trade:
https://archive.is/PbiPf
The Economists recalls the web of side-effects from the Smoot-Hawley tariffs to suggest that the felon-in-chief may be doing more than economic harm. This is probably self-evident to readers of this blog, but certainly isn’t self-evident to a great many voters, legislators and cabinet members.
In the flood of tariffs in response to Smoot-Hawley, tariffs on Japanese goods sold in Dutch colonies weakened Japan’s liberals, who were opposed to war. Monetary controls were imposed in response to tariffs, helping to trigger abandonment of the gold standard. And so on.
Perhaps mindful of Godwin’s law, the authors don’t bother to mention that the economic hardship of the Great Depression fostered Hitler’s rise. The fact that in Russia it helped solidify Stalin’s hold on power also goes unmentioned. Authoritarians and demagogues often beefit from economic turmoil. The fact that the U.S. swung toward liberalism later in the Great Depression probably accounts for much of the post-war shape of the world, a world in which, until recently war had become less common than in much of history.
Speaking of “King Dollar”, the authors finally engage in a bit of scary speculation – We’re no longer on the gold standard; we are now on a dollar standard. What happens if some dimwit decides to cut off swap lines just when they’re needed?
Off topic – further drift from the liberal ideal:
https://www.scmp.com/week-asia/economics/article/3301532/indias-answer-chinas-belt-and-road-starts-take-shape
India is ginning up its own “belt and road” program, with the annoying but descriptive moniker “India-Middle East-Europe Economic Corridor”. It is intended to compete with China by creating interlocking trade, aid, finance and development relationships. Notice that Europe is in, the U.S. out. Europe includes Russia, naturally.
India has the 5th largest economy by GDP, but isn’t in the top ten by value of international trade. That either suggests opportunity for rapid growth in trade, or a much less attractive partner than either the U.S. or China. As to which is the better view, I got nothin’.
The dollar is not doing that well – nor is Brent Oil. They kind of go hand in hand most of the time since oil is traded in dollars. The current price of Brent oil is $70 and profitability for many US fields comes at around $65. How is that “boom” in US oil production going to happen now – even if we give the right to drill away for free. There are already a glut of drilling permits that have not been touched.
The DoD no longer objects to segregation in the workplace:
https://talkingpointsmemo.com/edblog/dod-will-no-longer-prohibit-contractors-from-running-segregated-facilities
DoD contractors may now segregate their facilities, apparently in any way they choose – by race, sex, religion, sexual orientation, age height, weight, eye color…
That’s what the felon-in-chief stands for.