In 1929, President Herbert Hoover was in office when the stock market crashed. He signed the Smoot-Hawley Tariff Act to boost the U.S. economy, raising tariffs on U.S. trading partners. In response, they increased tariffs on U.S. goods, leading to a global economic downturn known as the Great Depression, which lasted for 10 years.
On April 2,President Trump raised tariffs on international trade via an executive order, leading U.S. stock markets to lose over $6 trillion in three days. Economists warn that sustained tariffs could cause a recession akin to the 1930s.
President Trump’s tariffs could trigger a global economic crisis. This repetition of history seems probable if his tariff policies persist. Stock market investors might have to delay retirement, and retirees relying on IRA investments risk depleting their funds prematurely.
While natural disasters can understandably disrupt savings or retirement plans, it is unacceptable when such disruptions are caused by the actions of the president of the United States.
Expert economists, CEOs from industry, as well as many of Trump’s billionaire friends have all advised him to not place unfair tariffs on our adversaries, and especially our allies. In fact, most will agree that free trade without any tariffs is best for all countries.
The emphasis on tariffs intended to revive U.S. manufacturing is misguided and ultimately counterproductive. The global economy is too intricate for such simplistic measures. For instance, coffee beans thrive in very warm climates, such as those found in Colombia, South America. Our climate is unsuitable for growing coffee beans, which means we lack a comparable commodity to trade. As a result, Americans will now pay a price a lot higher to have their favorite Starbucks latte.
Will congressional Republicans address the president’s tariffs to tackle economic and global challenges or will they opt not to intervene in his trade negotiations? The president does not have sole authority to issue tariffs, only Congress. Will they prioritize loyalty to the president or their duty to uphold the needs of their constituents?
Economic challenges require attention from both congressional leaders and citizens. Citizens can participate in town hall meetings and peaceful demonstrations to discuss the protection of their retirement plans. Do not let fear or complacency paralyze your ability to protect your lifetime of savings. Let courage be your strength.
John White
Midway