Moving From Protectionism to Liberalization
An examination of the 1930 Smoot-Hawley Tariff and the 1934 Reciprocal Trade Agreement Act
Introduction
While there have many fluctuations in the level of openness in the international economy, one period that stands out for its sharp turnaround is 1930-1934. In the span of four years, the United States went from imposing the Smoot-Hawley tariff, the most protective tariff in U.S. history, to signing the Reciprocal Trade Agreements Act, which “changed the way trade policy was determined and set the stage for American leadership in efforts to expand international trade.” (Bailey, Goldstein, and Weingast, 1997).
Section Two: Historical Views of Free Trade
Economists in support of free trade: Adam Smith, David Ricardo, Jean Baptiste Say, Frederic Bastiat, John Stuart Mill, Nicolaas Pierson, William Sumner
Economists in favor of protectionism: Alexander Hamilton, Daniel Raymond, Henry Carey, Adam Muller
Section Three: An Overview of the Smoot-Hawley Tariff
Section Four: An Overview of the 1934 Reciprocal Trade Agreement
Section Five: Conclusion
References
