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Contributor: Economic nostalgia woos voters, but it leads to terrible policies

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Contributor: Economic nostalgia woos voters, but it leads to terrible policies

History may not perfectly repeat itself, but it often rhymes. Two protectionist episodes — the infamous Smoot-Hawley Tariff Act of 1930 and the Trump-era tariffs of today — offer a striking example. Both emerged from economic nostalgia and fear of change. Both were politically attractive. And both were costly, backward-looking mistakes that undermined the economies they were meant to protect.

Smoot-Hawley was conceived in an America uneasy about economic transformation. In the 1920s, while the economy was otherwise booming, farmers were in crisis. After a postwar boom, crop prices had collapsed and rural debt soared. About one-quarter of the labor force still worked in agriculture, down from one-half a few decades before. Many Americans longed for an earlier era when agriculture was dominant and prosperous.

Foreign competition was the scapegoat. Politicians seized on this frustration. Promising protection from cheap imports was an easy way to win votes. The result was a tariff that raised duties on more than 20,000 goods by an average of about 20%.

Smoot-Hawley’s intent was to reduce imports and raise domestic prices, especially for farmers. But the plan backfired quickly. U.S. trading partners retaliated as Canada, Mexico, Cuba, Britain, France and others imposed their own tariffs. Exports plummeted, imports became more expensive, and global economic conditions deteriorated.

The timing couldn’t have been worse. The Great Depression had begun and the stock market, which had been slowly recovering from the 1929 crash, dropped again when the bill became law. Instead of stabilizing, the U.S. sank further into depression. Far from rescuing American farmers, the tariffs deepened their crisis. Between 1929 and 1934, global trade collapsed by 65%.

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Today, Smoot-Hawley is widely regarded as a catastrophic error.

Now fast-forward to the new wave of protectionist nostalgia, this time aimed at restoring manufacturing. Trump’s 2016 campaign promised to revive the lost era of factory jobs and industrial strength. And like 1920s Republicans blaming foreign crops for the collapse of agriculture, Trump blamed imported manufactured goods.

Never mind that America had long since shifted to a service-based economy or that manufacturing accounted for just 10% of jobs by 2016. The emotional appeal of “Make America Great Again” rested on a nostalgia-drenched longing for the age of smokestacks and assembly lines — and a broad and homogeneous middle class — before globalization and automation transformed the economy.

When Trump took office again in January, he inherited a robust economy that had further improved after his election, based on investors’ anticipation of pro-growth policies. Instead, the administration turned toward economic nationalism and shot the economy in the foot.

The culmination came on April 2, when Trump announced sweeping “Liberation Day” tariffs of 10% on all imports and additional steep, targeted tariffs against counterparts such as China, Japan, Vietnam and the European Union. He pitched it as a patriotic effort to restore sovereignty and rebuild industry.

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As we know, the fallout was immediate. Markets tanked, and trade partners threatened retaliation, with some even taking action. Economists warned of rising costs, damaged supply chains and diplomatic tensions. Australia, among others, condemned the move as economically hostile. Small businesses sued the administration, arguing that the tariffs exceeded presidential authority and inflicted serious harm.

And just as Smoot-Hawley hurt the farmers it was meant to help, Trump’s tariffs are hurting manufacturers. Far from delivering industrial renewal, they’ve led to layoffs at manufacturing plants.

In the end, despite its populist packaging, Liberation Day marked a dramatic escalation of failed protectionist thinking. It also revived 1930s-style nationalist rhetoric.

The two blunders have one more thing in common: cronyism. According to economic historian Douglas A. Irwin, Smoot-Hawley was not primarily about ideology. It was about interest-group politics: an ad hoc scramble driven by constituent demands, sectoral lobbying and legislative bargaining.

In the same way, Trump’s tariffs have revived the lobbying for tariff exemptions we saw in his first term. Apple got an exemption for the iPhone and now, understandably, everyone else wants one. As the Cato Institute’s Scott Lincicome commented on X, “The cronyism buffet line is now open.” National Review’s Dominic Pino calculated that tariff lobbying spending is up by 277%.

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The lesson is clear: Economic nostalgia is a poor guide to sound policy. Smoot-Hawley and Trump’s tariffs represent attempts to re-create a romanticized past — one of small farms or bustling factories — rather than to embrace the reality of a changing world. But economies are dynamic. Trying to freeze them in place with trade barriers doesn’t stop change; it just makes the transition harder, costlier and more painful.

History judged Smoot-Hawley harshly. The final verdict on Trump’s tariffs is not yet written, but the early signs are familiar. If we want prosperity, we must look forward, not backward. The future belongs to those who embrace change and creative destruction, not those who resist it.

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University. This article was produced in collaboration with Creators Syndicate.

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Video: Jan. 6 Rioter Hired by Pentagon

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Video: Jan. 6 Rioter Hired by Pentagon

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Jan. 6 Rioter Hired by Pentagon

Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.

“Full pardon or commutation?” “Full pardon.”

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Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.

By Alisa Shodiyev Kaff

June 4, 2026

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Democrats split over Tlaib’s Lebanon measure as Republicans seize on Hezbollah omission

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Democrats split over Tlaib’s Lebanon measure as Republicans seize on Hezbollah omission

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Democrats splintered over a resolution seeking to block the U.S. from assisting Israel’s war against Hezbollah, an Iranian-backed terrorist group, on Thursday. 

The measure, offered by progressive Rep. Rashida Tlaib, D-Mich., would require President Donald Trump to withdraw U.S. forces from Lebanon. For months, Israel and Hezbollah, a U.S.-designated terrorist group and Iranian proxy, have been at war in southern Lebanon, but the United States has not joined the conflict.

A bipartisan coalition of lawmakers, including House Minority Leader Hakeem Jeffries, D-N.Y., rejected the measure. Critics argued the resolution could aid Hezbollah and potentially hamstring U.S. military operations in the country. 

Tlaib’s resolution failed 92-324, with more than half of House Democrats joining nearly all Republicans to vote it down.

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The Lebanon war powers resolution divided Democrats, with House Minority Leader Hakeem Jeffries, D-N.Y., joining Republicans in rejecting the measure. (Aaron Schwartz/Bloomberg)

REP RASHIDA TLAIB MOVES TO BLOCK US OPERATIONS IN LEBANON BUT IGNORES HEZBOLLAH

Rep. Thomas Massie, R-Ky., an Israel critic, was the lone Republican to support Tlaib’s measure. Meanwhile, Reps. Derek Tran, D-Calif., and Betty McCollum, D-Minn., voted present.

House Democratic leaders said shortly before the vote they would oppose Tlaib’s resolution and work with the progressive lawmaker on a narrower measure exempting some U.S. military operations in the country. Their statement also denounced Hezbollah as a “violent terrorist organization” and a “sworn enemy of the United States.”

Tlaib, who has accused Israel of committing “ethnic cleansing” in Lebanon, did not mention Hezbollah in her resolution. She and other proponents of the measure also avoided discussing the Iranian proxy force during heated floor debate over the measure. 

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Republicans highlighted the omission and accused the legislation’s supporters of serving as “proxies for Hezbollah.”

“Apparently they don’t want to see Israel killing Hezbollah, even though it’s Hezbollah that is killing Israeli children, Israeli adults, Israeli elders,” House Foreign Affairs Committee Chairman Brian Mast, R-Fla., said Wednesday, referring to his Democratic colleagues.

Tlaib asserted that her resolution would only affect U.S. forces actively engaged in hostilities. Republicans, however, disputed that claim and suggested it would hurt U.S. efforts to counter Hezbollah. 

“It doesn’t say anything about [whether] you can keep the Marines that are in the embassy,” Mast said, referring to the U.S. embassy in Beirut. “That’s a pretty big oversight. It doesn’t say anything about whether we can keep United States armed forces that are training missions with the LAF [Lebanese Armed Forces]. Again, pretty big oversight.”

Rep. Rashida Tlaib, a Democrat from Michigan, attempted to bar U.S. forces from joining Israel’s war in Lebanon. (Tierney L. Cross/Bloomberg)

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RASHIDA TLAIB HIT WITH HOUSE CENSURE THREAT, ACCUSED OF ‘CELEBRATING TERRORISM’ IN PRO-PALESTINIAN SPEECH

The debate turned personal when Rep. Max Miller, R-Ohio, a member of the House Foreign Affairs Committee, linked Tlaib to Hezbollah.

“Hezbollah is a terrorist organization … and its members are butchers that you like to hang out with to a certain extent,” the Ohio lawmaker said, referring to Tlaib.

A shouting match between the two then broke out, with Tlaib demanding that Miller’s remarks be stricken from the record.

The presiding chair ultimately complied with her request, but Miller doubled down on his remarks.

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“Yes, I said it. I own it, and I stand by it,” Mast said on behalf of Miller on the floor.

Tlaib’s failed war powers resolution comes as Iran has sought to tie Israel’s invasion of Lebanon to its ceasefire negotiations with the United States.

Hezbollah, which has long helped Iran project power in the region, rejected a ceasefire agreement between Israel and Lebanon’s government Thursday.

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Senate rejects an initial attempt to ban Trump’s $1.8-billion ‘anti-weaponization’ fund

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Senate rejects an initial attempt to ban Trump’s .8-billion ‘anti-weaponization’ fund

Initial efforts in the Senate failed Thursday to block the $1.8-billion fund that the Trump administration has sought to establish to pay people who claim the government wronged them, though further attempts were likely to come Thursday afternoon.

Republicans narrowly voted down a Democratic amendment to ban the payout fund and then Democrats killed a Republican amendment, which would have prohibited the use of federal money for the fund but would have sent $1.7 billion to the Justice Department’s fraud division.

It was the second effort in Congress to rebuke President Trump in two days, following the House vote Wednesday to rein in Trump’s war powers in Iran.

The dueling amendments were proposed by Senate Minority Leader Chuck Schumer (D-N.Y.) and Sen. Thom Tillis (R-N.C.). They were attached to the reconciliation bill that would fund Immigration and Customs Enforcement and the Border Patrol, a high priority for Republicans.

The votes came as the Senate began a “vote-a-rama,” during which lawmakers were expected to propose a stream of amendments to the immigration bill on various topics.

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The Trump administration’s plan for the payment fund — widely seen as a way for Trump to compensate his political allies, including those who participated in the Jan. 6, 2021, attack on the Capitol — set off particular ire from some GOP lawmakers.

The plan has fueled growing unrest within parts of Trump’s party over his governance, compounded by the president’s endorsement of primary challengers to Sens. John Cornyn (R-Texas) and Bill Cassidy (R-La.), as well as Rep. Thomas Massie (R-Ky.), which angered some Republican senators.

Cassidy, who lost his primary and has since voiced strong opposition to Trump’s $1.8-billion fund, became a key player in the Thursday votes, voting down Schumer’s amendment but supporting Tillis’.

On Wednesday, Cassidy joined with Sen. Cory Booker (D-N.J.) to argue in a court filing that the $1.8-billion fund circumvents Congress’ authority and violates the Constitution’s spending and appropriations clauses.

“It is an unconstitutional attempt to spend the People’s money without Congressional approval,” Cassidy and Booker wrote in an amicus brief filed in the federal court case challenging the fund.

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The fund was created by the Justice Department to settle a lawsuit brought by Trump against the Internal Revenue Service over the leak of his tax returns. Trump and his sons agreed to drop their personal lawsuit against the government in exchange for the creation of the $1.776-billion fund. Critics immediately questioned the plan, and it drew a rare backlash from Republicans.

In late May, GOP senators derailed plans to vote on the immigration bill over their displeasure with the payout fund and with Trump’s desire to use taxpayer funds for his planned White House ballroom. Senate Republicans removed the ballroom funding from the immigration package Wednesday, another setback for Trump.

The Trump administration sought to back away from its plans for the fund this week, following bipartisan outcry and a federal court ruling that temporarily blocked any payouts from the fund. Acting Atty. Gen. Todd Blanche said Tuesday the administration would end its plans to move ahead with the concept.

But Trump on Wednesday told reporters he didn’t know whether the fund was dead, calling it “a beautiful thing.”

After Schumer proposed the first amendment to ban the fund Thursday morning, the Senate came to a standstill as three key Republican senators deliberated. Schumer framed his effort to ban the fund Thursday as a way to force a referendum on Trump’s plan.

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The amendment “offers Republicans a choice: Do you support Donald Trump’s $2 billion taxpayer-funded slush fund, or do you want to protect the American people and their paychecks?” Schumer said on the Senate floor before the vote.

Sen. Bernie Moreno (R-Ohio) urged Republicans to reject the amendment, saying Democrats were planning to “play so many games” on Thursday during the marathon session.

“We are going to fund immigration enforcement and border patrol, and I urge my Republican colleagues to stay united on that singular mission,” Moreno said.

The amendment failed after Cassidy voted against it. Republican Sens. Susan Collins of Maine, Jon Husted of Ohio and Dan Sullivan of Alaska voted in favor.

Schumer’s amendment was uniformly supported by Democrats, including California Sens. Adam Schiff and Alex Padilla.

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Tillis, who also voted against Schumer’s amendment, immediately proposed his amendment. Sen. Jeff Merkley (D-Oregon) urged Democrats to oppose it, saying that the proposal would create “a new slush fund” by giving the money to the Justice Department.

“We heard over the last 48 hours that the acting attorney general said that this fund’s not moving forward. All this amendment does is codify what I believe the policy of the DOJ is,” Tillis said on the floor before voting began on his amendment. “This [fund] is unpopular, this administration has said they’re not moving forward with it; this is an opportunity for us to put it to bed.”

Responded Merkley: “Taking one slush fund and eliminating it and then creating a new slush fund still under control of the attorney general is not the way to go. The way to go is to get rid of these slush funds altogether.”

Trump has faced a recent string of failures, including the House vote Wednesday, a court ruling to remove his name from the Kennedy Center and a record-low approval rating among Americans as concern rises about economic issues, gas prices and Trump’s war with Iran.

On Wednesday, Trump lashed out against the four Republicans who backed the House war powers resolution, calling it “an unpatriotic thing” to do and calling the vote “meaningless.”

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“They’re GRANDSTANDERS! They should be ashamed of themselves. MAGA!!! President DJT,” Trump wrote.

Times staff writer Ana Ceballos, in Washington, contributed to this report.

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