History Unplugged Podcast Did Tariffs Make America a Manufacturing Powerhouse Or Trigger Economic Misery and Stifle Global Trade?ads)
Jun 17, 2025
Phil Gramm, a former U.S. Senator and author of “The Triumph of Economic Freedom,” dives deep into the historical impact of tariffs on American manufacturing. He debates whether tariffs have been beneficial or harmful, exploring their role during significant periods like the Great Depression and the Industrial Revolution. Gramm challenges the idea that government intervention is the answer to economic woes, arguing that it often exacerbates inequality. He also discusses the delicate balance between trade and national security in today's economy, especially post-COVID.
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Tariffs Harm More Than Help
- Tariffs historically benefit a few while consumers bear the cost, reducing overall economic efficiency.
- Most American imports are components in manufacturing, so tariffs raise costs for producers and consumers alike.
Manufacturing Output Increased
- American manufacturing hasn't hollowed out; output rose despite fewer workers due to mechanization.
- Tariffs, like those under Trump, raised input costs and actually reduced industrial production and jobs.
Personal Story of Factory Decline
- Phil Gramm's mother worked in a textile mill but left for nursing where she effectively replaced factory jobs.
- Many manufacturers today report they cannot fill open jobs despite claims of lost manufacturing labor.
