Can Tariffs Protect The Economy?
Dugan is referring to tariffs imposed on imports by Congress in 1930 at the beginning of the Great Depression. The idea was meant to protect struggling American industries. But it instead made a bad economy worse. Between 1929 and 1934 world trade declined by 66 percent. For companies like Caterpillar, the problem is 50 to 80 percent of the products manufactured here in Illinois are exported. The fear is that if America turns inward, other countries will, too. The result: thousands more American jobs will be lost. “We’ve already heard from politicians in many other countries, if the United States takes this action, we’re going to be forced to do the same,” Dugan said. Indeed, concern from European politicians about the “Buy American” provision led President Obama and members of Congress to make clear the U.S. was not going to impose any anti free-trade protectionist measures. Analysts at the Alliance for American Manufacturing say buying American will protect taxpayer investments. They
