Economist Steve Hanke is not a fan of US President Donald Trump's tariffs, but by summoning Smoot Holy's tariff laws and denounced them as “the stupidest thing in my life,” economist Steve Hanke portrays historical parallels between today's economic situation and the early 1930s.
Trump's trade collection could lead to repeated market free falls in the 1930s, Hanke warns
On social media platform X, American economist Steve Hanke (his applied economics research, currency reform work, and monetary policy expertise is unbelievable) has made a surprising statement about Trump's tariff measures. On Sunday, he took him to X and said, “According to my friend and former colleague David Stockman, Trump's proposed tariffs would increase the cost of input for American companies by $500 (billion).”
He then added “Tax (equal) Economic Destruction Ball” in all capital letters. In another X-post featuring Hanke's video, the economist warns that current economic policies reflect economic policies of the early 1930s. “And that's similar to what's going on now, because what was the situation in 1930? Money Supply was on a contract.
Hanke added:
What's more, did Smoot-Hawley's tariffs be announced in March, which came into effect in July? The market was low to low market from the time of its release in March 1930 until June 1932. The Dow lost 83%. So I think we are in a difficult time.
He further criticizes the Trump administration's approach, suggesting that its advisors misunderstand or underestimate the risks at hand. Accidental firing of Trump's potential economic fallout, framing it as a minor or short-lived issue, reveals Hanke's historical precedent and deep cutting off from financial reality
“We've seen this movie before,” Hanke claimed in the video. “It's clear that people around Trump had no clue as to what was going on, and Trump acts like he's a bit of a blip in a few days, etc. If this doesn't change, we'll get into a lot of trouble… And I'm diplomatically, this is the stupidest thing I've seen in my life.
