US Economists Urge Trump To Avoid Protectionist Mistakes Of The 1930s
Umer Jamshaid Published May 04, 2018 | 10:40 AM
More than 1,100 US economists signed a letter sent to President Donald Trump and to Congress on Thursday urging them to avoid repeating the mistakes that worsened the Depression in the 1930s.
Washington, May 4(APP - UrduPoint / Pakistan Point News - 4th May, 2018 ) :More than 1,100 US economists signed a letter sent to President Donald Trump and to Congress on Thursday urging them to avoid repeating the mistakes that worsened the Depression in the 1930s.
The economic advisors to two Republican and two Democratic presidents and 15 Nobel laureates were among those urging the administration to fend off "a host of new protectionist activity, including threats to withdraw from trade agreements, misguided calls for new tariffs in response to trade imbalances, and the imposition of tariffs." The letter, from the National Taxpayers Union, which advocates for tax reform and government spending cuts, was sent on the anniversary of a similar missive sent to Congress on May 3, 1930.
That letter also featured more than 1,000 economists urging legislators to reject the Smoot-Hawley Tariff Act, a trade measure widely blamed for deepening and prolonging the global economic crisis.
"Congress did not take economists' advice in 1930 and Americans across the country paid the price," the NTU said. "The undersigned economists and teachers of economics strongly urge you not to repeat that mistake." The petition comes as a high level delegation led by Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross are in Beijing negotiating a solution to the trade dispute sparked when Trump imposed steep tariffs on aluminum and steel, and on $50 billion in Chinese goods.
- 'Flat-earther economics' - The Trump administration accuses China of rampant theft of US intellectual property and is demanding changes to their investment and patent protection policies, and is also reportedly considering cutting off access of Chinese high-tech companies to US products.
The White House also has riled the European Union which has only been given a temporary exemption from the steel and aluminum tariffs, which are now set to take effect on June 1. The NTU letter quotes from the 1930 missive, which warned that tariffs would hurt consumers through price increases, and farmers through loss of markets for their goods.
"Such action would inevitably provoke other countries to pay us back in kind by levying retaliatory duties against our goods," the letter said, adding that the policies would sow bitterness. "A tariff war does not furnish good soil for the growth of world peace." The signatories include economists who advised former presidents Ronald Reagan and George W.
Bush as well as former Federal Reserve vice chair Alan Blinder, and 2001 Nobel prize winner George Akerlof, husband of former Fed chair Janet Yellen. NTU's Free Trade Initiative director Bryan Riley said, "very few policy areas generate as much consensus among professional economists like free trade does. Protectionism is flat-earther economics."
Related Topics
Recent Stories
PML-N to hold meeting today on wheat procurement
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 4 May 2024
Today Gold Rate in Pakistan 04 May 2024
Pakistan marks World Press Freedom Day
High-level Saudi business delegation due on May 5
Stocks heat up as US labour market cools
President approves Tax Laws (Amendment) Bill 2024
Implementation of merit, justice to oppressed segments top priorities: CPO
Overseas Kashmir community delegation calls on AJK President, discusses latest s ..
Govt believes in freedom of press: Amir Muqam
Labour urges UK election after Tory losses
Health authorities asked for action against alleged illegal tenders at Services ..
More Stories From World
-
Reds beat Crusaders to break 25-year Christchurch drought
40 minutes ago -
Heatwave hammers Thailand's stinky but lucrative durian farms
50 minutes ago -
Flood-hit Kenya and Tanzania on alert as cyclone nears
1 hour ago -
Three bodies found after surfers go missing in Mexico: FBI
1 hour ago -
Three bodies found after surfers go missing in Mexico
1 hour ago -
Former aide tells Trump trial of 2016 campaign 'crisis'
2 hours ago
-
Rafah assault 'could lead to a bloodbath': WHO chief
2 hours ago -
Magic withstand Mitchell's big night to stay alive against Cavaliers
2 hours ago -
In southern Brazil, flood victims cope with total loss
2 hours ago -
Hamas says delegation heading to Cairo for truce talks
2 hours ago -
Biden bashes Trump, honors top US Democrats at medal ceremony
2 hours ago -
Verstappen takes sprint pole in Miami
2 hours ago