by Alan Reynolds, Cato at Liberty, April 8, 2025.
Excerpt:
“The saga of government folly reached a new zenith in 1930, marking a pivotal moment with dire repercussions. As nations struggled under the weight of international debt—debt that could only be alleviated through the production of goods for export—we, the leading creditor nation, opted for a self-defeating strategy: raising tariffs once again. The passage of the Hawley-Smoot Tariff Act in June 1930 stands as a financial misstep unparalleled during the tumultuous years from 1920 to 1933…
“The moment we increased our tariffs, a global chain reaction ensued, prompting countries around the world to follow suit by erecting trade barriers and quotas. Protectionism took hold like wildfire, isolating markets and shrinking trade opportunities. This led to a swift rise in unemployment across export industries globally, while prices for export commodities—especially agricultural products in the U.S.—tumbled at an alarming rate. Notably, U.S. farm prices saw a significant decline throughout 1930, with the most rapid downturn occurring post-enactment of the tariff bill.
“Financial circles were acutely aware of the peril posed by this legislation, holding out hope until the very end that President Hoover might veto the bill. However, on January 15, it was revealed that he would indeed sign it. The following Monday, this news triggered a 12-point drop (about a 5% plunge) in the New York Times averages, while industrials plummeted nearly twenty points. It appears the market had a clearer grasp of the situation than the President himself.”
DRH note: The 12 point drop was a drop of approximately 5%.
by C. Bradley Thompson, The Redneck Intellectual, April 8, 2025.
Excerpt:
“One of Thompson’s aspirations is that the long-suffering Canadian populace will one day break free from their gentle form of tyranny—disguised under the veil of renowned Canadian politeness—and reclaim their freedoms from the creeping socialism that has been gradually eroding Canada since April 20, 1968, when the charming Pierre Trudeau first took office as Prime Minister.
“Canada once thrived as a free society, especially in the pre-World War II era. To illustrate this, the early twentieth-century classical liberal thinker Albert Jay Nock wrote an insightful essay titled ‘Why Nature’s Way is Best’ in the American Magazine in July 1911, where he posited that Alberta was one of the freest regions on earth.”
DRH comment: As a fellow Canadian, I share Thompson’s perspective. While Trudeau’s legacy is mixed, he did take a significant step towards equality by legalizing homosexuality as Justice Minister before his premiership. Alberta’s historical resistance to Medicare during Trudeau’s time is indeed fascinating.
by Phillip W. Magness, Quillette, April 9, 2025.
Excerpt:
“The chaos emanating from the White House reveals an ideological tug-of-war within the Trump administration. Although Trump assembled a team of ‘tariff men’ to push his agenda, internal disagreements regarding the intended outcomes of these tariffs have led to disarray. The result of this conflicting vision is a muddled implementation strategy over the past two months, where goals range from classic protectionism to revenue generation, and even a radical plan to devalue the dollar and ‘reset’ the global economy. Rather than establishing a unified tariff strategy, these factions vie for the president’s attention, leading him down divergent paths.”
And:
“The repercussions of Navarro’s statistical machinations will undoubtedly inflict significant harm on the American populace. Contrary to the claims of classical protectionists, tariffs invariably shift their burden onto consumers—either through direct price hikes or by forcing importers to turn to ‘protected’ domestic firms that subsequently inflate prices. Instead of solving trade deficits, these tariffs often deliver counterproductive consequences for U.S. exporters. They must absorb increased costs from tariffs on raw materials, and retaliatory measures from other nations further target U.S. exporters with punitive tariffs, effectively ostracizing them from international markets.”
by Adam N. Michel and Joshua Loucks, Cato at Liberty, April 11, 2025.
Excerpt:
“Despite the persistent political rhetoric, IRS data reveals that the federal tax system is not just highly progressive; it has become more so over time. High-income Americans shoulder a disproportionately large share of federal income taxes and face the steepest average rates across the entire tax code.
“With top earners already facing high tax rates, they cannot alone bear the financial burden of an ever-expanding government. The experiences of European welfare states serve as a cautionary tale: ultimately, everyone pays for the bloated government. With annual deficits nearing $2 trillion, the real issue isn’t a lack of tax revenue—it’s excessive spending.”
