Just Asking Questions Phil Magness: The Problem With Trumponomics
11 snips
Mar 27, 2025 
Phil Magness, an economic historian at the Independent Institute, delves into the complexities of Trump’s tariffs and trade policies. He discusses the historical impact of tariffs as both revenue sources and political tools, highlighting lessons from the Smoot-Hawley Tariff. Magness critiques the nostalgia for past economic strategies and explores the implications of proposed initiatives like the Mar-a-Lago Accord. He emphasizes the unpredictability of Trump's economic agenda, especially regarding onshoring production and public sentiment surrounding tariffs.
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Smoot-Hawley Tariff Act Backfires
- The Smoot-Hawley Act, intended to protect the US economy during the Great Depression, backfired.
- It triggered an international trade war, devastating global trade and particularly harming the US agricultural sector.
The Great Forgetting
- The Smoot-Hawley Act's failure is a forgotten lesson due to fading historical memory.
- This collective amnesia allows for the resurgence of bad ideas, including protectionist trade policies.
Tariff Conspiracy Theory
- A conspiracy theory about tariffs, once confined to fringe groups, has entered mainstream politics.
- The theory claims economists have suppressed the "true" history of 19th-century tariff-driven prosperity.