2016 May 12th
Back about 1930 when Herbert Hoover was intent on saving
money and halting our slide into depression, a couple of well-meaning
Republicans decided on a remedy. Senator Reed Smoot and Representative Willis
Hawley introduced a bill that raised the tariff on some 20 thousand imported
goods. OK, why not? If you cut off imports you provide an increased market for
stuff made right here at home. What could go wrong? Answer: a whole lot could
and a whole lot did.
The Smoot Hawley act, as it came to be known, is assumed by
many (not all) economists to be responsible for pushing this country deeper
into the great depression and taking the rest of the world along for the ride.
When we increased the tariff on goods imported from other countries to protect
our markets those other countries did the same thing to us and worldwide trade slowed
considerably. Now we had reduced domestic markets and negligible foreign
markets. This has become known as “protectionism” and has become a very ugly
word for both Republicans and Democrats. About the only thing both parties can
now agree on is opening avenues for trade; not all avenues because the Cuban
American population in Florida is still mightily opposed to relaxing trade
embargoes with the “homeland.” Hey, maybe another 50 years and these
restrictions will work out.
Enter the nearly newly anointed Republican Presidential
nominee, Donald J. Trump. Mr. Trump is sure that many Americans are out of work
because of “bad trade deals” that he will fix once he is elected. Well, maybe
not; Mr. Trump doesn’t understand that the President’s ability to fix any “bad
trade deals” is very limited. Trump should familiarize himself with the Trade
Protection Act (TPA) that manages to assign responsibilities among Senate,
House and the Executive branch for trade deals. Trump should be aware that the
President does not even have the authority to lift the embargo against trade
with Cuba. If he had that authority, he would have used it.
Trump is not aware of the limits of the executive’s power.
His claim that he would prohibit Muslims from entering the country (he now says
that was just a suggestion) is not within the President’s power. Indeed, it is
almost certainly unconstitutional, but Trump doesn’t know that. He claims that
Mexico will pay for the wall because he will slap import tariffs on Mexican
goods coming into the country but as President he wouldn’t have the authority
to do that either. Trumps understanding of American Government is not quite at
the level of a tenth grade civics student.
The problem is that not only doesn’t Donald Trump know that
but neither do the placard waving supporters who are cheering for him.
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