Source: Geron
On June 17, 1930, the sky in Washington was particularly clear.
In the Oval Office of the White House, President Herbert Hoover signed his name on the Smurt-Holly Tariff Act with his gilded pen.
The sunlight shines on the documents through the floor-to-ceiling windows, reflecting the big words "Protect American Industry".
The President at that time may not have known that this seemingly decision to protect the US economy would become one of the most serious economic policy mistakes in the 20th century.
"Mr. President, are you sure you want to sign this bill?"
Secretary of State Henry Stimson tried to dissuade him for the last time: "Just yesterday, another 200 economists joined the opposition."
Hoover knew what the Secretary of State meant, but he still frowned when he raised his head: "Henry, look out the window! The streets are full of unemployed workers, and farmers are selling their food at a low price. We must protect American job opportunities!"
Three months later, Canadian Ambassador to the United States James Creighton left the State Department building angrily, and he had just received an emergency telegram from Ottawa:
Immediately impose retaliatory tariffs on American agricultural products!
But this is not the end, but just the beginning, the beginning of a global trade war.
1. Prelude
Every major decision has a profound historical background. The better ones are called following the trend, and the worse ones are called bein...
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