I listened to his radio address this past weekend and was glad to hear that he was changing his tune and even suggesting some things I had suggest a few months ago in this blog when I first heard his economic plan. Namely that he desires to revive the economy through a job-creating public works plan (hopefully on a state by state level). In addition, his prowess showed because I aint her the word “spend” not once, instead it was replaced with the word “invest”. However, he aint mention no cost estimate for his plan or talk about how it will be disseminated, and even more importantly, what structural changes would be implement (laws abrogated) or international issues that needed to be addressed to get the economy rolling. This is important because common folks seem to be more detailed regarding the economic crisis we face than politicians – inclusive of him.
As such I am scared that he may consider a Smoot-Hawley Tariff Act (men in pic) approach to help with this problem – which I don’t think is a smart thing to do. In June 1930 this act was designed to increase the protection afforded domestic farmers against foreign agricultural imports. Now I know it is far fetched, but he has stated on the record that he would “strengthen the productivity of our workers and businesses; by enforcing our existing trade agreements and negotiating better trade agreements.” I also know that he has not said anything about issues related to free trade, especially since the deficit reflects the amount of foreign investment to the U.S. economy; which for the record without, we would have a whole bunch more foreclosures and business closing their doors.
And back then, although it was no bail out, it reminds me of the bail out since it was enacted to protect a certain economic sector – farmers. The bail out has similarly targeted banks, now auto industry and maybe next, states and credit card companies. For after the Smoot-Hawley Tariff Act was put in place, like now with the bailout, folks asking for increased protection came in from all the other industrial sector special interest groups,
Now I’m gonna keep an open mind, and recant, In not hating but rather thinking and want to know what Jones got in mind regarding free trade because legislation like the Smoot-Hawley did not make the depression any better for it was enacted after prior legislation to deal with the economic problem like the Fordney-McCumber tariff. All I am saying is that I don’t give a Smoot, but that enquiring minds would like to know.