Reply To: US/China Trade War

[Anonymous 0xp 0]

@bvandewalker the Trade War started by Smoot and Hawley was the major factor in the fall of trade between America and the rest of the world in the 1930s.  As far as I can remember, US exports and imports fell by about 50%.   Most economists would agree that it was a major contributing factor in increasing the severity of the Great Depression (and it is probably one of the few things about the Great Depression they do agree on).

As a follow up to my earlier post, it was David Riccardo who actually came up with the concept of Comparative and Absolute advantage, but Adam Smith did allude to it in The Wealth of Nations, so I was wrong in my earlier comment.  Also as far as I can ascertain there is currently no tariffs on scale models and games so this would be an immediate 25% increase in cost at the US boarder.