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Keynes and Trump Tariffs

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This article was first published by me on Talkmarkets: https://talkmarkets.com/content/economics--politics/keynes-and-trump-tariffs?post=180941&uid=4798

It is important to look at the arguments for tariffs in the Great Depression era of the 1930's if we are to understand the full danger they bring to the world.

In modern times, the basic argument against tariffs is of course, the complexity of the world we live in. Something labelled made in America may have parts from different nations. Same holds true with something made in Mexico. But in the days of the Great Depression, the complexity did not exist.

But in the Great Depression, the issue was a simple one. Tariffs are difficult to roll back. They cannot be applied temporarily. Of course, the argument that they could be applied temporarily was made by John Maynard Keynes, British economist, and the most influential economist of his time. keynes was a free trader who saw the need to modify his views as the Great Depression b…