Economic nostalgia woos voters, but it leads to terrible policies

Los Angeles Times - Apr 24th, 2025
Open on Los Angeles Times

The article draws parallels between the Smoot-Hawley Tariff Act of 1930 and the recent tariffs imposed during Trump's administration, highlighting how both were driven by economic nostalgia and political motivations. These tariffs were intended to protect domestic industries but instead led to economic downturns and international retaliation. Smoot-Hawley, for instance, aimed to protect American farmers but resulted in a significant decline in global trade and exacerbated the Great Depression. Similarly, Trump's tariffs, branded as a patriotic effort to restore American manufacturing, led to market instability, trade tensions, and negative impacts on the very industries they aimed to support.

The historical context underscores the risks of using protectionist measures as a response to economic change. Both episodes reflect a desire to revert to an idealized past rather than adapt to current realities. The article emphasizes that economies are inherently dynamic and that policies based on nostalgia are misguided. Instead of halting change, protectionism intensifies economic challenges. The author argues that understanding these historical lessons is crucial for fostering prosperity, suggesting that embracing change and innovation is essential for future economic success.

Story submitted by Fairstory

RATING

6.0
Moderately Fair
Read with skepticism

The article effectively highlights the historical and contemporary consequences of protectionist policies, using the Smoot-Hawley Tariff Act and Trump's tariffs as case studies. It provides a clear and engaging narrative that connects past and present economic challenges, emphasizing the dangers of economic nostalgia.

While the article is generally accurate, it lacks comprehensive sourcing and transparency, which limits its credibility. The critical perspective on protectionism is well-articulated, but the article would benefit from a more balanced exploration of differing viewpoints and potential benefits of tariffs.

Overall, the article is timely and relevant, contributing to ongoing debates about trade policy and economic nationalism. It has the potential to engage readers and provoke thoughtful discussion, but requires more nuanced analysis and transparency to maximize its impact.

RATING DETAILS

8
Accuracy

The article provides a largely accurate portrayal of the historical and contemporary effects of protectionist tariffs, specifically the Smoot-Hawley Tariff Act of 1930 and the Trump-era tariffs. The claim that Smoot-Hawley raised duties on more than 20,000 goods by an average of about 20% is well-supported by historical data, although some sources suggest the increase was higher, ranging from 40% to 60%. The article correctly identifies the economic retaliation from trading partners and the subsequent decline in global trade, which are well-documented consequences of Smoot-Hawley.

Regarding the Trump-era tariffs, the article accurately reflects the economic disruptions and market volatility associated with these policies. However, the specific claim about the "Liberation Day" tariffs of 10% on all imports lacks detailed verification, as comprehensive sources do not confirm this exact figure. Nonetheless, the broader impacts of Trump's tariffs, such as threats of retaliation and supply chain issues, are consistent with economic analyses.

The discussion of cronyism and lobbying during both tariff periods is plausible but would benefit from more precise data, particularly the claim about a 277% increase in tariff lobbying spending. Overall, the article's factual basis is strong, but some claims require further corroboration to ensure precision.

6
Balance

The article presents a predominantly critical view of protectionist policies, focusing on the negative economic consequences of the Smoot-Hawley Tariff Act and Trump's tariffs. It effectively highlights the historical parallels between these two episodes, emphasizing the adverse outcomes of economic nostalgia-driven policies.

However, the article lacks a balanced exploration of potential arguments in favor of tariffs, such as their intended goals of protecting domestic industries and jobs. It does not consider the perspectives of those who support protectionist measures or the potential short-term benefits that some sectors might experience.

The absence of these viewpoints creates a somewhat one-sided narrative, which could be perceived as biased against protectionism. Including a broader range of perspectives would provide a more comprehensive understanding of the complex motivations and impacts of tariff policies.

7
Clarity

The article is generally clear and well-structured, presenting a coherent narrative that compares the Smoot-Hawley Tariff Act and Trump's tariffs. It effectively communicates the main argument that economic nostalgia can lead to detrimental protectionist policies.

The language is accessible, and the historical context is explained in a way that is understandable to a general audience. The use of historical parallels helps to illustrate the author's points and makes the narrative engaging.

However, the article could benefit from more precise language in certain areas, particularly when discussing the specific impacts of Trump's tariffs. Some claims, such as the "Liberation Day" tariffs, lack clarity due to the absence of detailed evidence. Overall, the article is readable and informative, but some areas require further elaboration for complete clarity.

5
Source quality

The article does not explicitly cite its sources, which makes it challenging to assess the credibility and reliability of the information presented. While the historical facts about the Smoot-Hawley Tariff Act are well-documented in economic history, the lack of direct attribution to authoritative sources weakens the article's credibility.

The analysis of Trump's tariffs and their impacts would benefit from references to specific economic studies, government reports, or expert commentary to substantiate the claims made. The mention of economic historian Douglas A. Irwin and the Cato Institute's Scott Lincicome adds some authority, but more comprehensive sourcing is needed.

Overall, the article would benefit from clearer source attribution to enhance its reliability and provide readers with the opportunity to verify the claims independently.

4
Transparency

The article lacks transparency in its methodology and sourcing, which makes it difficult for readers to assess the basis of the claims made. While it provides a narrative of historical and contemporary events, it does not disclose the specific sources or data used to support its analysis.

The absence of explicit citations or references to supporting materials limits the transparency of the article. Readers are not informed about the research or data collection methods used to arrive at the conclusions presented.

To improve transparency, the article should include references to primary sources, such as historical documents, economic reports, or expert analyses. This would allow readers to evaluate the evidence and context behind the claims and enhance the article's credibility.

Sources

  1. https://corporatefinanceinstitute.com/resources/economics/smoot-hawley-tariff-act/
  2. https://www.britannica.com/topic/Smoot-Hawley-Tariff-Act
  3. https://www.investopedia.com/terms/s/smoot-hawley-tariff-act.asp
  4. https://abcnews.go.com/Business/smoot-hawley-tariffs-trump/story?id=116381286
  5. https://www.efginternational.com/us/insights/2025/when_protectionism_backfired_the_smoot-hawley_tariff_act_of_1930.html