The Smoot-Hawley Tariff Act
“I think I accidentally tariffed myself.”
If there’s one thing America loves, it’s repeating bad decisions. In 1930, the Smoot-Hawley Tariff Act raised taxes on over 20,000 imported goods in an attempt to “protect” American jobs. Instead, it triggered a global trade war, drove up prices, and helped sink the economy into the Great Depression.
Fast forward nearly 100 years, and we’re flirting with the same economic disaster. Protectionist policies are back in style, with modern tariffs creating supply chain disruptions, price hikes, and international retaliation. So, the big question: Are we just dumb? Or is there something else at play?
In this episode of Toonsplained, Gary and I dig into the history of Smoot-Hawley and why it was one of the worst economic policies ever. Meanwhile, Joey—who still doesn’t know what a tariff is—has somehow ended up homeless but refuses to admit it. (Shocking, considering he thinks he can survive off patriotism alone.)
So, are we doomed to repeat history? And why would policymakers push for tariffs if they know they cause economic chaos? The answers might be more cynical than you think.
