Petition Against the Hawley-Smoot Tariff, 1930

Petition Against the Hawley-Smoot Tariff, 1930

Overview of the Petition

• Over 1000 economists from across the United States endorsed a petition against the Hawley-Smoot Tariff.

Major Arguments Against the Tariff

Tariffs would raise prices for all consumers

• Economists assert that increased protective duties are a mistake.

• Key Point: Tariffs would generally lead to increased prices for domestic consumers.

• Implication: Higher tariffs lead to a higher cost of living, negatively impacting the majority of citizens.

Tariffs would lower US exports

• Analysis of the impact on various occupations:

  • Many workers across different sectors (miners, construction, transportation, utilities, professional services, retail, etc.) have no products that could be protected by tariff barriers and would, therefore, suffer from the tariff.

• The majority of farmers would also be adversely affected:

  • Their crops (cotton, corn, lard, wheat) are primarily sold in international markets with minimal domestic competition.

  • Economic Impact: Increased duties on manufactured goods would lead to higher costs for farmers in two ways:

  1. Consumer side: Farmers would bear higher prices for textiles, chemicals, iron, and steel.

  2. Producer side: Their capacity to sell agricultural products would decline as barriers restrict foreign markets.

• Overall export trade would decline:

  • The argument states that countries cannot maintain a purchasing relationship without the ability to sell.

  • Core Assertion: Increasing tariffs will reduce the potential for reciprocal trade, undermining exports.

• Anticipation of retaliatory measures from other countries is noted:

  • Countries may respond to US tariffs by imposing their own duties on American goods.

Counterarguments to Proponents of Higher Tariffs

• Proponents claim that higher tariffs will create jobs:

  • Economists counter that restricting trade does not lead to increased employment.

  • Current economic conditions (recession/unemployment) would benefit from avoiding additional burdens on American industry by keeping tariffs low.

International Relations and Global Peace

• Advocacy for careful consideration of the international implications of increased tariffs:

  • Higher tariffs could exacerbate tensions in international relations.

  • The proposed higher duties conflict with existing trade agreements and may instigate further trade barriers from other nations.

  • Conclusion: A tariff war undermines the foundations of global peace.