The cinematic classic Ferris Buellers Day Off" made the broader public aware of the greatness that is Ben Stein. Already a lawyer and speechwriter for Presidents Richard Nixon and Gerald Ford Stein was cast as the atonal Economics teacher droning his students into stupor.
Stein was asked to improvise on camera a lecture. He chose to in part address one of the fundamental contributors to the Great Depression - anti-free trade protectionism. Specifically the 1930 SmootHawley Tariff Act.
Purportedly passed to ameliorate the Depression the Act raised (United States) tariffs on over 20000 imported goods to record levels."
As Stein asks and answers in the flick Did it work? Anyone? Anyone know the effects? It did not work and the United States sank deeper into the Great Depression."
Not a shocker. The less you inhibit the free exchange of goods and services the greater the economic opportunities and growth. If you consciously constrict any portion of the economy you will get less opportunities and growth.
In ways both seen and unseen. By preemptively proscribing some activities you kill in the crib any creativity that could have ensued.
If - say to protect the horse buggy industry - we had outlawed Henry Fords newly minted automobile we would have lost inconceivable amounts of future economic activity.
Think of all the ancillary and tertiary businesses that exist because the car industry was allowed to develop a little less fettered.
Whole sectors of the economy to service the car - and whole other sectors that couldnt exist without it.
None of which would be here had the government made a dumb preemptive automotive move.
We have been told incessantly that we are enduring the worst economic crisis since the Great Depression. (Its not. For instance the Jimmy Carter economy Ronald Reagan inherited was much worse.)
Were entering Year Six of the non-recovery Recovery" - because a lot of really dumb government policies have hindered growth. Bailouts ObamaCare Dodd-Frank and (other) new taxes to name but a few have fended off any sort of actual recovery.
Like say our government imposing the worlds largest corporate tax.
39.2 percent… Obvious to all but the ideo-illlogical is that this hampers our ability to compete with the planet….
Top U.S. Firms Are Cash-Rich Abroad Cash-Poor at Home
U.S. Companies Stashing More Cash Abroad As Stockpiles Hit Record $1.45T
Look At The Humongous Amounts Of Money US Tech Companies Stash Overseas To Avoid Taxes
Wouldnt it be outstanding if we made it more attractive for these trillions to be brought home and invested here?
Yes it would. Instead we get more dumb government proposals.
Democrats Eye Tax on U.S. Groups Overseas Cash
Speaking of Smoot-Hawley - global free trade actually garnered a positive mention in President Barack Obamas January State of the Union speech.
(N)ew trade partnerships with Europe and the Asia-Pacific will help them create more jobs. We need to work together on tools like bipartisan trade promotion authority….
It will also help us create more jobs - with this guy well take what we can get. Do his fellow Democrats get it? Not so much.
Obama Trade Dilemma: Scant Support from Democrats
Which brings us to the just passed gi-normous heinous Farm Bill.
For years our ridiculous bloated subsidy-and-tax farm law was only terrible domestic policy. But as a global farm market developed it became yet another free trade impediment.
And it led other farm-exporting countries to erect their own free trade impediments. Lather-rinse-repeat - decades later the we have turned the global market into an a la carte protectionism nightmare mess.
Our Democrat anti-free trade usual suspects - still dont get it.
Democrats See Farm Bill Rural Voters as Key to 2014 Election
Top Democrats to Attend Farm Bill Signing
Vilsack and Sherrod Brown Team Up to Push Farm Bill as Economic Driver
Sure its driving us - off a cliff. Thank you very much Thelma Vilsack and Louise Brown.
We have to start viewing farm law as what it is - international trade policy not a domestic gravy goodie bag.
The worlds farm exporter nations need to sit down together each with a copy of everyone elses lists of protectionist farm policies. And start horse trading.
Brazil how about if you get rid of this subsidy well each get rid of one."
Mexico if you get rid of this tariff well each get rid of one."
Let the subsequent discussions ensue. Lather rinse repeat.
The free trade folks and the anti-Farm Bill folks have a lot in common - these days more than ever.
Its time to start working together - towards our mutual national betterment.
The cinematic classic Ferris Buellers Day Off" made the broader public aware of the greatness that is Ben Stein. Already a lawyer and speechwriter for Presidents Richard Nixon and Gerald Ford Stein was cast as the atonal Economics teacher droning his students into stupor.
Stein was asked to improvise on camera a lecture. He chose to in part address one of the fundamental contributors to the Great Depression - anti-free trade protectionism. Specifically the 1930 SmootHawley Tariff Act.
Purportedly passed to ameliorate the Depression the Act raised (United States) tariffs on over 20000 imported goods to record levels."
As Stein asks and answers in the flick Did it work? Anyone? Anyone know the effects? It did not work and the United States sank deeper into the Great Depression."
Not a shocker. The less you inhibit the free exchange of goods and services the greater the economic opportunities and growth. If you consciously constrict any portion of the economy you will get less opportunities and growth.
In ways both seen and unseen. By preemptively proscribing some activities you kill in the crib any creativity that could have ensued.
If - say to protect the horse buggy industry - we had outlawed Henry Fords newly minted automobile we would have lost inconceivable amounts of future economic activity.
Think of all the ancillary and tertiary businesses that exist because the car industry was allowed to develop a little less fettered.
Whole sectors of the economy to service the car - and whole other sectors that couldnt exist without it.
None of which would be here had the government made a dumb preemptive automotive move.
We have been told incessantly that we are enduring the worst economic crisis since the Great Depression. (Its not. For instance the Jimmy Carter economy Ronald Reagan inherited was much worse.)
Were entering Year Six of the non-recovery Recovery" - because a lot of really dumb government policies have hindered growth. Bailouts ObamaCare Dodd-Frank and (other) new taxes to name but a few have fended off any sort of actual recovery.
Like say our government imposing the worlds largest corporate tax.
39.2 percent… Obvious to all but the ideo-illlogical is that this hampers our ability to compete with the planet….
Top U.S. Firms Are Cash-Rich Abroad Cash-Poor at Home
U.S. Companies Stashing More Cash Abroad As Stockpiles Hit Record $1.45T
Look At The Humongous Amounts Of Money US Tech Companies Stash Overseas To Avoid Taxes
Wouldnt it be outstanding if we made it more attractive for these trillions to be brought home and invested here?
Yes it would. Instead we get more dumb government proposals.
Democrats Eye Tax on U.S. Groups Overseas Cash
Speaking of Smoot-Hawley - global free trade actually garnered a positive mention in President Barack Obamas January State of the Union speech.
(N)ew trade partnerships with Europe and the Asia-Pacific will help them create more jobs. We need to work together on tools like bipartisan trade promotion authority….
It will also help us create more jobs - with this guy well take what we can get. Do his fellow Democrats get it? Not so much.
Obama Trade Dilemma: Scant Support from Democrats
Which brings us to the just passed gi-normous heinous Farm Bill.
For years our ridiculous bloated subsidy-and-tax farm law was only terrible domestic policy. But as a global farm market developed it became yet another free trade impediment.
And it led other farm-exporting countries to erect their own free trade impediments. Lather-rinse-repeat - decades later the we have turned the global market into an a la carte protectionism nightmare mess.
Our Democrat anti-free trade usual suspects - still dont get it.
Democrats See Farm Bill Rural Voters as Key to 2014 Election
Top Democrats to Attend Farm Bill Signing
Vilsack and Sherrod Brown Team Up to Push Farm Bill as Economic Driver
Sure its driving us - off a cliff. Thank you very much Thelma Vilsack and Louise Brown.
We have to start viewing farm law as what it is - international trade policy not a domestic gravy goodie bag.
The worlds farm exporter nations need to sit down together each with a copy of everyone elses lists of protectionist farm policies. And start horse trading.
Brazil how about if you get rid of this subsidy well each get rid of one."
Mexico if you get rid of this tariff well each get rid of one."
Let the subsequent discussions ensue. Lather rinse repeat.
The free trade folks and the anti-Farm Bill folks have a lot in common - these days more than ever.
Its time to start working together - towards our mutual national betterment.