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Great Depression 2.0 Warning: Economist Explains Ugly Side Of Tariffs | Steve Hanke
Nov 28, 2024
Steve Hanke, a Professor of Applied Economics at Johns Hopkins University, dives deep into the implications of Trump's tariffs, linking them to historical trends like the Smoot-Hawley tariffs. He explores the potential for trade collapse and rising unemployment, emphasizing tariffs’ impacts on consumers and the U.S. dollar. Hanke also shares insights on inflation dynamics, questioning if it's returning, and discusses Bitcoin's current rally, examining its speculative nature and government involvement. It's a thought-provoking analysis of today's economic challenges.
59:45
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Quick takeaways
- The tariff policies reminiscent of the Smoot-Hawley era could disrupt international trade, escalate unemployment, and strain global relationships.
- Inflationary pressures may arise from past money supply increases, highlighting the significance of understanding monetary policies for future economic predictions.
Deep dives
The Impact of Tariffs on the U.S. Economy
The introduction of tariffs, particularly under the Trump administration, has potential parallels to the Smoot-Hawley tariffs which contributed to the Great Depression. While the tariffs initially aimed to protect American businesses, they could lead to significant backlash and retaliation from trading partners, further diminishing international trade. Experts suggest that such protectionist measures could create tension in global relationships and disrupt supply chains, particularly for industries reliant on imports. The uncertainty surrounding tariffs may lead to sluggish economic growth and increased unemployment, particularly in sectors that depend on exports.
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