Renowned economist Thomas Sowell has expressed concerns regarding President Trump’s tariffs, suggesting they risk instigating a trade war reminiscent of the policies that worsened the Great Depression. In a recent interview, Sowell criticises the current administration for potentially repeating the “ruinous decisions” of the 1929-1930 Smoot-Hawley tariffs, which sought to shield American industries but ultimately led to retaliations that crippled global trade.
Sowell asserts that while short-term tariffs might serve specific strategic ends, maintaining them long-term could lead to a dire scenario akin to the historical outcomes of a global trade war. This would not only diminish international trade but also create an economic climate filled with uncertainty that could dissuade consumers and investors.
He reflects on how Franklin D. Roosevelt navigated the economic landscape post-Smoot-Hawley, experimenting with various policies to alleviate the Depression. However, Sowell warns that desultory and unpredictable measures can lead to economic paralysis, as people may hoard their money amidst uncertainty about forthcoming regulations.
Sowell indicates that while targeted tariffs could be permissible for short durations, sustained trade policies lacking a coherent framework could instigate significant financial reluctance among individuals and businesses. Recent stock market declines could be attributed to such indecisiveness, as investors await clarity before making financial commitments.
The reputable economist, who retired from his syndicated column in 2016 at the age of 86, continues to advocate for strategic economic policies. His full interview will be available on April 15, 2025, as part of the “Uncommon Knowledge with Peter Robinson” series.
Economist Thomas Sowell cautions that Trump’s tariffs could evoke historical trade war consequences similar to those seen during the Great Depression. He suggests that short-term tariffs might have merit but warns that prolonged policies can lead to economic uncertainty and reduced investment. Sowell underscores the importance of a stable regulatory framework to avoid the pitfalls of the past.
In conclusion, Thomas Sowell’s insights into Trump’s tariffs reveal significant risks of echoing the past mistakes that deepened the Great Depression. He warns against the dangers of extended tariffs and the uncertainties they breed, suggesting that a coherent, strategic approach is critical. History, as he aptly notes, has lessons that should not be overlooked if economic stability is to be maintained.
Original Source: www.foxbusiness.com
