Marc Brodie
- Published in print:
- 2004
- Published Online:
- January 2010
- ISBN:
- 9780199270552
- eISBN:
- 9780191710254
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199270552.001.0001
- Subject:
- History, Social History
This book is about the political views of the ‘classic’ poor of London's East End in the late Victorian and Edwardian periods. The residents of this area have been historically characterized as ...
More
This book is about the political views of the ‘classic’ poor of London's East End in the late Victorian and Edwardian periods. The residents of this area have been historically characterized as abjectly poor, casually employed, slum dwellers with a poverty-induced apathy toward political solutions interspersed with occasional violent displays of support for populist calls for protectionism, imperialism, or anti-alien agitation. These factors, in combination, have been thought to have allowed the Conservative Party to politically dominate the East End in this period. This study demonstrates that many of these images are wrong. Economic conditions in the East End were not as uniformly bleak as often portrayed. The workings of the franchise laws also meant that those who possessed the vote in the East End were generally the most prosperous and regularly employed of their occupational group. Conservative electoral victories in the East End were not the result of poverty. Political attitudes in the East End were determined to a far greater extent by issues concerning the ‘personal’ in a number of senses. The importance given to individual character in the political judgements of the East End working class was greatly increased by a number of specific local factors. These included the prevalence of particular forms of workplace structure, and the generally somewhat shorter length of time on the electoral register of voters in the area. Also important was a continuing attachment to the Church of England amongst a number of the more prosperous working class. In the place of many ‘myths’ about the people of the East End and their politics, this study provides a model that does not seek to explain the politics of the area in full, but suggests the point strongly that we can understand politics, and the formation of political attitudes, in the East End or any other area, only through a detailed examination of very specific localized community and workplace structures. This book challenges the idea that a ‘Conservatism of the slums’ existed in London's East End in the Victorian and Edwardian period. It argues that images of abjectly poor residents who supported Conservative appeals about protectionism, imperialism, and anti-immigration are largely wrong. Instead, it was the support of better-off workers, combined with a general importance in the area of the ‘personal’ in politics emphasized by local social and workplace structures, which delivered the limited successes that the Conservatives did enjoy.Less
This book is about the political views of the ‘classic’ poor of London's East End in the late Victorian and Edwardian periods. The residents of this area have been historically characterized as abjectly poor, casually employed, slum dwellers with a poverty-induced apathy toward political solutions interspersed with occasional violent displays of support for populist calls for protectionism, imperialism, or anti-alien agitation. These factors, in combination, have been thought to have allowed the Conservative Party to politically dominate the East End in this period. This study demonstrates that many of these images are wrong. Economic conditions in the East End were not as uniformly bleak as often portrayed. The workings of the franchise laws also meant that those who possessed the vote in the East End were generally the most prosperous and regularly employed of their occupational group. Conservative electoral victories in the East End were not the result of poverty. Political attitudes in the East End were determined to a far greater extent by issues concerning the ‘personal’ in a number of senses. The importance given to individual character in the political judgements of the East End working class was greatly increased by a number of specific local factors. These included the prevalence of particular forms of workplace structure, and the generally somewhat shorter length of time on the electoral register of voters in the area. Also important was a continuing attachment to the Church of England amongst a number of the more prosperous working class. In the place of many ‘myths’ about the people of the East End and their politics, this study provides a model that does not seek to explain the politics of the area in full, but suggests the point strongly that we can understand politics, and the formation of political attitudes, in the East End or any other area, only through a detailed examination of very specific localized community and workplace structures. This book challenges the idea that a ‘Conservatism of the slums’ existed in London's East End in the Victorian and Edwardian period. It argues that images of abjectly poor residents who supported Conservative appeals about protectionism, imperialism, and anti-immigration are largely wrong. Instead, it was the support of better-off workers, combined with a general importance in the area of the ‘personal’ in politics emphasized by local social and workplace structures, which delivered the limited successes that the Conservatives did enjoy.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0007
- Subject:
- Economics and Finance, International
Rules of origin (ROOs) in US free-trade agreements (FTAs) provide particularized benefits to industries like textiles and autos. In so doing, they have helped win Congressional approval of ...
More
Rules of origin (ROOs) in US free-trade agreements (FTAs) provide particularized benefits to industries like textiles and autos. In so doing, they have helped win Congressional approval of controversial pacts like NAFTA (1993) and CAFTA (2005). ROOs are a form of hidden protection, reducing overall welfare, but they help US officials build winning coalitions for specific FTAs in the absence of a broad societal consensus in favor of trade liberalization.Less
Rules of origin (ROOs) in US free-trade agreements (FTAs) provide particularized benefits to industries like textiles and autos. In so doing, they have helped win Congressional approval of controversial pacts like NAFTA (1993) and CAFTA (2005). ROOs are a form of hidden protection, reducing overall welfare, but they help US officials build winning coalitions for specific FTAs in the absence of a broad societal consensus in favor of trade liberalization.
Milada Anna Vachudova
- Published in print:
- 2005
- Published Online:
- April 2005
- ISBN:
- 9780199241194
- eISBN:
- 9780191602382
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241198.003.0005
- Subject:
- Political Science, European Union
The EU had a negligible impact on the course of political change in the new democracies from 1989 to 1994. This chapter traces empirically the relationship between the EU and the liberal and ...
More
The EU had a negligible impact on the course of political change in the new democracies from 1989 to 1994. This chapter traces empirically the relationship between the EU and the liberal and illiberal pattern states during this period. The EU’s passive leverage merely reinforced the (relatively) comprehensive reforms adopted by governing elites in the liberal states, while failing to avert or modify the rent-seeking behaviour of elites in the illiberal states. This chapter also reveals how the liberal states came to appreciate fully the benefits of EU membership through exposure to the protectionism of the EU during the negotiation and the implementation of the Europe Agreements. Meanwhile, the EU itself slowly came to terms with the prospect of a future eastern enlargement.Less
The EU had a negligible impact on the course of political change in the new democracies from 1989 to 1994. This chapter traces empirically the relationship between the EU and the liberal and illiberal pattern states during this period. The EU’s passive leverage merely reinforced the (relatively) comprehensive reforms adopted by governing elites in the liberal states, while failing to avert or modify the rent-seeking behaviour of elites in the illiberal states. This chapter also reveals how the liberal states came to appreciate fully the benefits of EU membership through exposure to the protectionism of the EU during the negotiation and the implementation of the Europe Agreements. Meanwhile, the EU itself slowly came to terms with the prospect of a future eastern enlargement.
Sevket Pamuk
- Published in print:
- 2018
- Published Online:
- May 2019
- ISBN:
- 9780691166377
- eISBN:
- 9780691184982
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691166377.001.0001
- Subject:
- Economics and Finance, Economic History
The population and economy of the area within the present-day borders of Turkey has consistently been among the largest in the developing world, yet there has been no authoritative economic history ...
More
The population and economy of the area within the present-day borders of Turkey has consistently been among the largest in the developing world, yet there has been no authoritative economic history of Turkey until now. This book examines the economic growth and human development of Turkey over the past two hundred years. Taking a comparative global perspective, the book investigates Turkey's economic history through four periods: the open economy during the nineteenth-century Ottoman era, the transition from empire to nation-state that spanned the two world wars and the Great Depression, the continued protectionism and import-substituting industrialization after World War II, and the neoliberal policies and the opening of the economy after 1980. Making use of indices of GDP per capita, trade, wages, health, and education, the book argues that Turkey's long-term economic trends cannot be explained only by immediate causes such as economic policies, rates of investment, productivity growth, and structural change. The book offers a deeper analysis of the essential forces underlying Turkey's development—its institutions and their evolution—to make better sense of the country's unique history and to provide important insights into the patterns of growth in developing countries during the past two centuries.Less
The population and economy of the area within the present-day borders of Turkey has consistently been among the largest in the developing world, yet there has been no authoritative economic history of Turkey until now. This book examines the economic growth and human development of Turkey over the past two hundred years. Taking a comparative global perspective, the book investigates Turkey's economic history through four periods: the open economy during the nineteenth-century Ottoman era, the transition from empire to nation-state that spanned the two world wars and the Great Depression, the continued protectionism and import-substituting industrialization after World War II, and the neoliberal policies and the opening of the economy after 1980. Making use of indices of GDP per capita, trade, wages, health, and education, the book argues that Turkey's long-term economic trends cannot be explained only by immediate causes such as economic policies, rates of investment, productivity growth, and structural change. The book offers a deeper analysis of the essential forces underlying Turkey's development—its institutions and their evolution—to make better sense of the country's unique history and to provide important insights into the patterns of growth in developing countries during the past two centuries.
Gautam Sen
- Published in print:
- 2003
- Published Online:
- November 2003
- ISBN:
- 9780199261437
- eISBN:
- 9780191599309
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199261431.003.0006
- Subject:
- Political Science, International Relations and Politics
An examination is made of the relationship between the US and the General Agreement on Tariffs and Trade (GATT), and its successor, the World Trade Organization, addressing the crucial question of ...
More
An examination is made of the relationship between the US and the General Agreement on Tariffs and Trade (GATT), and its successor, the World Trade Organization, addressing the crucial question of the likelihood that the US will exit, or through its behaviour undermine, the multilateral trade organization in favour of regional or bilateral alternatives. It is concluded that the probability of a US‐inspired weakening of the WTO is low, although the incentives for protectionism in the US are strong and growing as a result of globalization and the changing international division of labour. The US domestic political system gives voice to such protectionist interests in international trade policy through a set of administrative and legal remedies that are reinforced by principles such as reciprocity and ‘fair trade’. Countervailing factors to this situation include the growing power of US export interests, the effectiveness of the Executive in deflecting the protectionist tendencies in the US Congress, and the exceptional power and influence of the US over the multilateral regime, in which it is a rule maker rather than a rule taker, enjoying the power to bend the rules selectively to serve its interests. As such, the WTO tends to reflect and reinforce US economic interests, and the US is, therefore, likely to continue in overall terms its efforts to comply with and generally strengthen the multilateral organization, rather than to break away from it.Less
An examination is made of the relationship between the US and the General Agreement on Tariffs and Trade (GATT), and its successor, the World Trade Organization, addressing the crucial question of the likelihood that the US will exit, or through its behaviour undermine, the multilateral trade organization in favour of regional or bilateral alternatives. It is concluded that the probability of a US‐inspired weakening of the WTO is low, although the incentives for protectionism in the US are strong and growing as a result of globalization and the changing international division of labour. The US domestic political system gives voice to such protectionist interests in international trade policy through a set of administrative and legal remedies that are reinforced by principles such as reciprocity and ‘fair trade’. Countervailing factors to this situation include the growing power of US export interests, the effectiveness of the Executive in deflecting the protectionist tendencies in the US Congress, and the exceptional power and influence of the US over the multilateral regime, in which it is a rule maker rather than a rule taker, enjoying the power to bend the rules selectively to serve its interests. As such, the WTO tends to reflect and reinforce US economic interests, and the US is, therefore, likely to continue in overall terms its efforts to comply with and generally strengthen the multilateral organization, rather than to break away from it.
Douglas A. Irwin
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691150321
- eISBN:
- 9781400838394
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691150321.001.0001
- Subject:
- Economics and Finance, Economic History
The Smoot–Hawley tariff of 1930, which raised U.S. duties on hundreds of imported goods to record levels, is America's most infamous trade law. It is often associated with—and sometimes blamed ...
More
The Smoot–Hawley tariff of 1930, which raised U.S. duties on hundreds of imported goods to record levels, is America's most infamous trade law. It is often associated with—and sometimes blamed for—the onset of the Great Depression, the collapse of world trade, and the global spread of protectionism in the 1930s. Even today, the ghosts of congressmen Reed Smoot and Willis Hawley haunt anyone arguing for higher trade barriers; almost single-handedly, they made protectionism an insult rather than a compliment. This book provides the first comprehensive history of the causes and effects of this notorious measure, explaining why it largely deserves its reputation for combining bad politics and bad economics and harming the U.S. and world economies during the Depression. The book presents an authoritative account of the politics behind Smoot–Hawley, its economic consequences, the foreign reaction it provoked, and its aftermath and legacy. Starting as a Republican ploy to win the farm vote in the 1928 election by increasing duties on agricultural imports, the tariff quickly grew into a logrolling, pork barrel free for all in which duties were increased all around, regardless of the interests of consumers and exporters. After Herbert Hoover signed the bill, U.S. imports fell sharply and other countries retaliated by increasing tariffs on American goods, leading U.S. exports to shrivel as well. While Smoot–Hawley was hardly responsible for the Great Depression, the book argues, it contributed to a decline in world trade and provoked discrimination against U.S. exports that lasted decades. The book tells a fascinating story filled with valuable lessons for trade policy today.Less
The Smoot–Hawley tariff of 1930, which raised U.S. duties on hundreds of imported goods to record levels, is America's most infamous trade law. It is often associated with—and sometimes blamed for—the onset of the Great Depression, the collapse of world trade, and the global spread of protectionism in the 1930s. Even today, the ghosts of congressmen Reed Smoot and Willis Hawley haunt anyone arguing for higher trade barriers; almost single-handedly, they made protectionism an insult rather than a compliment. This book provides the first comprehensive history of the causes and effects of this notorious measure, explaining why it largely deserves its reputation for combining bad politics and bad economics and harming the U.S. and world economies during the Depression. The book presents an authoritative account of the politics behind Smoot–Hawley, its economic consequences, the foreign reaction it provoked, and its aftermath and legacy. Starting as a Republican ploy to win the farm vote in the 1928 election by increasing duties on agricultural imports, the tariff quickly grew into a logrolling, pork barrel free for all in which duties were increased all around, regardless of the interests of consumers and exporters. After Herbert Hoover signed the bill, U.S. imports fell sharply and other countries retaliated by increasing tariffs on American goods, leading U.S. exports to shrivel as well. While Smoot–Hawley was hardly responsible for the Great Depression, the book argues, it contributed to a decline in world trade and provoked discrimination against U.S. exports that lasted decades. The book tells a fascinating story filled with valuable lessons for trade policy today.
Michelle P. Egan
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199244058
- eISBN:
- 9780191599132
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199244057.003.0005
- Subject:
- Political Science, European Union
Focuses on the role of European case law in fostering an integrated market. Through a series of landmark cases, including Cassis De Dijon, Dassonville, and Keck, the European Court of Justice has ...
More
Focuses on the role of European case law in fostering an integrated market. Through a series of landmark cases, including Cassis De Dijon, Dassonville, and Keck, the European Court of Justice has supported trade and commerce in determining whether national legislation is protectionist or serves a legitimate function in promoting health, safety, and other public policy objectives. Analogies with the US are also discussed, particularly in promoting interstate commerce by addressing trade discrimination, and in developing legal principles to balance sovereign state powers with the need for integrated markets. The central argument is that a common framework of market rules has been pursued within a setting of well‐defined legal and judicial mechanisms, which have also provided mechanisms of enforcement and compliance with treaty goals. Of central importance is that legal reasoning shifted the focus of market integration from harmonization to mutual recognition as a key trade strategy to integrate markets. The role of law has been critical in sustaining a market economy, and case law shapes both states and markets, determining the constitutional limits to state intervention in markets and the level of government at which regulation is most appropriate and legitimate through legal mechanisms of non‐discrimination, balancing standards, and proportionality.Less
Focuses on the role of European case law in fostering an integrated market. Through a series of landmark cases, including Cassis De Dijon, Dassonville, and Keck, the European Court of Justice has supported trade and commerce in determining whether national legislation is protectionist or serves a legitimate function in promoting health, safety, and other public policy objectives. Analogies with the US are also discussed, particularly in promoting interstate commerce by addressing trade discrimination, and in developing legal principles to balance sovereign state powers with the need for integrated markets. The central argument is that a common framework of market rules has been pursued within a setting of well‐defined legal and judicial mechanisms, which have also provided mechanisms of enforcement and compliance with treaty goals. Of central importance is that legal reasoning shifted the focus of market integration from harmonization to mutual recognition as a key trade strategy to integrate markets. The role of law has been critical in sustaining a market economy, and case law shapes both states and markets, determining the constitutional limits to state intervention in markets and the level of government at which regulation is most appropriate and legitimate through legal mechanisms of non‐discrimination, balancing standards, and proportionality.
Jude C. Hays
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195369335
- eISBN:
- 9780199871056
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195369335.003.0002
- Subject:
- Political Science, Political Economy
The chapter is organized as follows. The first section briefly reviews and critiques the literature on trade and government spending. The second section examines the empirical determinants of ...
More
The chapter is organized as follows. The first section briefly reviews and critiques the literature on trade and government spending. The second section examines the empirical determinants of individual support for protectionism. The results show that lesser educated individuals, unemployed individuals, and individuals employed in tradable industries, particularly import competing industries, are the strongest opponents of free trade, but unemployment insurance and, to a lesser extent, other government programs can moderate their opposition. There is some evidence that active labor market spending is counterproductive in the sense that these programs lower support for free trade among workers in tradable sectors of the economy. Based on these findings, it is argued that the macro-level relationship between trade and government spending is a conditional one. More specifically, it is argued that (1) politicians respond more strongly to surges in imports and less so to expanding trade if it is balanced or generating trade surpluses; and (2) the extent to which politicians respond to rising imports will be a function of how many workers are employed in tradable industries and the overall level of unemployment.Less
The chapter is organized as follows. The first section briefly reviews and critiques the literature on trade and government spending. The second section examines the empirical determinants of individual support for protectionism. The results show that lesser educated individuals, unemployed individuals, and individuals employed in tradable industries, particularly import competing industries, are the strongest opponents of free trade, but unemployment insurance and, to a lesser extent, other government programs can moderate their opposition. There is some evidence that active labor market spending is counterproductive in the sense that these programs lower support for free trade among workers in tradable sectors of the economy. Based on these findings, it is argued that the macro-level relationship between trade and government spending is a conditional one. More specifically, it is argued that (1) politicians respond more strongly to surges in imports and less so to expanding trade if it is balanced or generating trade surpluses; and (2) the extent to which politicians respond to rising imports will be a function of how many workers are employed in tradable industries and the overall level of unemployment.
Jude C. Hays
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195369335
- eISBN:
- 9780199871056
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195369335.003.0003
- Subject:
- Political Science, Political Economy
This chapter argues that because of important cross-national differences in domestic political and economic institutions, the severity of Rodrik's globalization dilemma varies across countries. In ...
More
This chapter argues that because of important cross-national differences in domestic political and economic institutions, the severity of Rodrik's globalization dilemma varies across countries. In particular, the degree to which globalization increases demands for protection depends on how, and the extent to which, shocks in international commercial markets are transmitted to domestic labor markets. The chapter is organized as follows. The first section discusses some of the new challenges to corporatism and how corporatist institutions have evolved in response to them. The second section theoretically examines how trade affects labor market volatility in both competitive and corporatist systems—a topic that gets relatively little attention in the literature. It then turns to the empirical relationships between trade, employment, and labor market volatility. The final section reviews the broader literature on the comparative economic performance of national labor markets throughout the OECD, focusing primarily on the issue of wage inequality.Less
This chapter argues that because of important cross-national differences in domestic political and economic institutions, the severity of Rodrik's globalization dilemma varies across countries. In particular, the degree to which globalization increases demands for protection depends on how, and the extent to which, shocks in international commercial markets are transmitted to domestic labor markets. The chapter is organized as follows. The first section discusses some of the new challenges to corporatism and how corporatist institutions have evolved in response to them. The second section theoretically examines how trade affects labor market volatility in both competitive and corporatist systems—a topic that gets relatively little attention in the literature. It then turns to the empirical relationships between trade, employment, and labor market volatility. The final section reviews the broader literature on the comparative economic performance of national labor markets throughout the OECD, focusing primarily on the issue of wage inequality.
Robert Gulotty
- Published in print:
- 2020
- Published Online:
- September 2020
- ISBN:
- 9780226669229
- eISBN:
- 9780226669533
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226669533.001.0001
- Subject:
- Political Science, International Relations and Politics
It is widely expected that the growth and power of trade-dependent and multinational firms would make protectionism politically untenable. This book argues that governments can use trade barriers to ...
More
It is widely expected that the growth and power of trade-dependent and multinational firms would make protectionism politically untenable. This book argues that governments can use trade barriers to advance the competitive interests of large businesses whose operations span borders. Regulatory barriers to trade act as entry barriers for smaller foreign competitors, raising prices and profits for large multinationals. As a result, governments that have more at stake in the profits of multinational firms are more likely to embrace stricter regulatory standards. The book offers statistical evidence from disputed measures at the WTO, as well as contentious fights over safety and health in the food, chemical, and even children’s toy manufacturing to show that large firms, and their host governments, not only embrace but demand stricter regulation, all at the expense of smaller foreign firms.Less
It is widely expected that the growth and power of trade-dependent and multinational firms would make protectionism politically untenable. This book argues that governments can use trade barriers to advance the competitive interests of large businesses whose operations span borders. Regulatory barriers to trade act as entry barriers for smaller foreign competitors, raising prices and profits for large multinationals. As a result, governments that have more at stake in the profits of multinational firms are more likely to embrace stricter regulatory standards. The book offers statistical evidence from disputed measures at the WTO, as well as contentious fights over safety and health in the food, chemical, and even children’s toy manufacturing to show that large firms, and their host governments, not only embrace but demand stricter regulation, all at the expense of smaller foreign firms.
E. H. H. GREEN
- Published in print:
- 2002
- Published Online:
- January 2010
- ISBN:
- 9780198205937
- eISBN:
- 9780191717116
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198205937.003.0002
- Subject:
- History, Political History
This chapter examines the political economy of the Edwardian Conservative leader Arthur Balfour, and seeks to open new vistas on the complexities and nuances of the tariff reform versus free trade ...
More
This chapter examines the political economy of the Edwardian Conservative leader Arthur Balfour, and seeks to open new vistas on the complexities and nuances of the tariff reform versus free trade debate that dominated Conservative politics in the first decade of the century. It is argued that Balfour developed his own conception of tariff reform, based on his acceptance of the ideas of historical economists and his earlier espousal of bimetallism. He favoured the use of retaliation rather than the full-blown protectionism and imperial preference championed by Joseph Chamberlain that came to dominate Conservative thinking. Balfour's lack of belief in this version of tariff reform resulted in a seeming want of conviction in the debate, which led to persistent criticism of his leadership and his eventual resignation in 1911.Less
This chapter examines the political economy of the Edwardian Conservative leader Arthur Balfour, and seeks to open new vistas on the complexities and nuances of the tariff reform versus free trade debate that dominated Conservative politics in the first decade of the century. It is argued that Balfour developed his own conception of tariff reform, based on his acceptance of the ideas of historical economists and his earlier espousal of bimetallism. He favoured the use of retaliation rather than the full-blown protectionism and imperial preference championed by Joseph Chamberlain that came to dominate Conservative thinking. Balfour's lack of belief in this version of tariff reform resulted in a seeming want of conviction in the debate, which led to persistent criticism of his leadership and his eventual resignation in 1911.
Douglas A. Irwin
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691150321
- eISBN:
- 9781400838394
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691150321.003.0001
- Subject:
- Economics and Finance, Economic History
This introductory chapter discusses the background of the Smoot–Hawley tariff, which President Herbert Hoover signed into law on June 17, 1930. The Smoot–Hawley tariff ranks among the most infamous ...
More
This introductory chapter discusses the background of the Smoot–Hawley tariff, which President Herbert Hoover signed into law on June 17, 1930. The Smoot–Hawley tariff ranks among the most infamous pieces of congressional legislation of the twentieth century. Although imports were not surging into the country or causing any great problem for the economy, Congress raised tariffs on imported goods with the intention of protecting farmers and manufacturers from what little foreign competition they faced. In doing so, they did not follow any economic logic or consider the interests of consumers and exporters who would be harmed by the tariffs. Instead, they engaged in the most blatant form of pork-barrel politics, catering to the demands of special interests that wanted to limit imports. Not surprisingly, several foreign countries retaliated by imposing duties on U.S. exports. These trade restrictions spread just as the world economy was beginning to sink into a depression. The contribution of the Smoot–Hawley tariff to the collapse of trade and the Great Depression of the 1930s has been debated ever since.Less
This introductory chapter discusses the background of the Smoot–Hawley tariff, which President Herbert Hoover signed into law on June 17, 1930. The Smoot–Hawley tariff ranks among the most infamous pieces of congressional legislation of the twentieth century. Although imports were not surging into the country or causing any great problem for the economy, Congress raised tariffs on imported goods with the intention of protecting farmers and manufacturers from what little foreign competition they faced. In doing so, they did not follow any economic logic or consider the interests of consumers and exporters who would be harmed by the tariffs. Instead, they engaged in the most blatant form of pork-barrel politics, catering to the demands of special interests that wanted to limit imports. Not surprisingly, several foreign countries retaliated by imposing duties on U.S. exports. These trade restrictions spread just as the world economy was beginning to sink into a depression. The contribution of the Smoot–Hawley tariff to the collapse of trade and the Great Depression of the 1930s has been debated ever since.
Douglas A. Irwin
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691150321
- eISBN:
- 9781400838394
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691150321.003.0002
- Subject:
- Economics and Finance, Economic History
This chapter focuses on the long and politically divisive passage of the Smoot–Hawley tariff through Congress. The popular perception is that Congress enacted a higher tariff because it caved in to ...
More
This chapter focuses on the long and politically divisive passage of the Smoot–Hawley tariff through Congress. The popular perception is that Congress enacted a higher tariff because it caved in to the demands of special interest groups. In fact, the tariff did not originate in response to demands by politically powerful industries facing competition from imports, but was offered up by Republican politicians who wanted to appease farmers during the presidential election campaign in 1928. The tariff was initiated near a business cycle peak when business was good, not in the midst of the Depression, and it was poorly suited to help farmers, many of whom depended on exports to foreign markets. Of course, the manner in which Congress handled the tariff gave rise to its association with special interest lobbying and logrolling (vote trading among members of Congress), a perception that is wholly accurate.Less
This chapter focuses on the long and politically divisive passage of the Smoot–Hawley tariff through Congress. The popular perception is that Congress enacted a higher tariff because it caved in to the demands of special interest groups. In fact, the tariff did not originate in response to demands by politically powerful industries facing competition from imports, but was offered up by Republican politicians who wanted to appease farmers during the presidential election campaign in 1928. The tariff was initiated near a business cycle peak when business was good, not in the midst of the Depression, and it was poorly suited to help farmers, many of whom depended on exports to foreign markets. Of course, the manner in which Congress handled the tariff gave rise to its association with special interest lobbying and logrolling (vote trading among members of Congress), a perception that is wholly accurate.
Douglas A. Irwin
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691150321
- eISBN:
- 9781400838394
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691150321.003.0003
- Subject:
- Economics and Finance, Economic History
This chapter addresses the economic effects of the Smoot–Hawley tariff. The popular perception is that the tariff raised import duties to record levels and helped cause the Great Depression. In fact, ...
More
This chapter addresses the economic effects of the Smoot–Hawley tariff. The popular perception is that the tariff raised import duties to record levels and helped cause the Great Depression. In fact, the legislated tariff increase was much smaller than commonly imagined, although it still managed to erase 15 percent of America's imports of dutiable goods upon impact. It was the deflation of prices that accompanied the Great Depression that pushed the tariff to near record levels, restricting trade even more. Furthermore, most economic historians do not believe that the Smoot–Hawley tariff played a large role in the macroeconomic contraction experienced during the Depression. Instead, a series of monetary and financial shocks pushed the economy into a downward spiral, with the tariff playing a secondary role.Less
This chapter addresses the economic effects of the Smoot–Hawley tariff. The popular perception is that the tariff raised import duties to record levels and helped cause the Great Depression. In fact, the legislated tariff increase was much smaller than commonly imagined, although it still managed to erase 15 percent of America's imports of dutiable goods upon impact. It was the deflation of prices that accompanied the Great Depression that pushed the tariff to near record levels, restricting trade even more. Furthermore, most economic historians do not believe that the Smoot–Hawley tariff played a large role in the macroeconomic contraction experienced during the Depression. Instead, a series of monetary and financial shocks pushed the economy into a downward spiral, with the tariff playing a secondary role.
Douglas A. Irwin
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691150321
- eISBN:
- 9781400838394
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691150321.003.0004
- Subject:
- Economics and Finance, Economic History
This chapter examines at the international reaction to the Smoot–Hawley tariff. The popular perception is that the tariff backfired by triggering retaliation against U.S. exports and the spread of ...
More
This chapter examines at the international reaction to the Smoot–Hawley tariff. The popular perception is that the tariff backfired by triggering retaliation against U.S. exports and the spread of trade blocs that discriminated against the United States, inflicting long-term damage for U.S. commercial and foreign policy interests. This perception is largely accurate. While countries did not broadcast that they were retaliating against the United States for imposing the tariff, the nature and timing of the measures they took strongly suggest that was the primary motivation. A month after the Smoot–Hawley tariff was imposed, a pro-American Liberal government in Canada lost a general election to the pro-British Conservatives, who erected trade barriers designed to shift Canada's imports from the United States to Britain. Other countries discriminated against U.S. exports as well, and the nation's share of world trade fell sharply.Less
This chapter examines at the international reaction to the Smoot–Hawley tariff. The popular perception is that the tariff backfired by triggering retaliation against U.S. exports and the spread of trade blocs that discriminated against the United States, inflicting long-term damage for U.S. commercial and foreign policy interests. This perception is largely accurate. While countries did not broadcast that they were retaliating against the United States for imposing the tariff, the nature and timing of the measures they took strongly suggest that was the primary motivation. A month after the Smoot–Hawley tariff was imposed, a pro-American Liberal government in Canada lost a general election to the pro-British Conservatives, who erected trade barriers designed to shift Canada's imports from the United States to Britain. Other countries discriminated against U.S. exports as well, and the nation's share of world trade fell sharply.
Douglas A. Irwin
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691150321
- eISBN:
- 9781400838394
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691150321.003.0005
- Subject:
- Economics and Finance, Economic History
This chapter assesses the aftermath and legacy of the Smoot–Hawley tariff. Smoot–Hawley gave congressional trade policy making a bad name that persists to this day. Those who enacted it promised ...
More
This chapter assesses the aftermath and legacy of the Smoot–Hawley tariff. Smoot–Hawley gave congressional trade policy making a bad name that persists to this day. Those who enacted it promised economic growth and prosperity, but it was followed instead by plummeting exports and depression. The Tariff Act of 1930, the formal name of the Smoot–Hawley tariff, was the last general tariff revision undertaken by Congress. Four years later, Congress ushered in a new era of U.S. trade policy by delegating power to the president to negotiate agreements with other countries to reduce tariffs. This approach gave the United States its current system, embodied in the General Agreement on Tariffs and Trade and its successor, the World Trade Organization. Yet the lessons of Smoot–Hawley continue to be debated whenever trade policy issues rise to the top of the national agenda.Less
This chapter assesses the aftermath and legacy of the Smoot–Hawley tariff. Smoot–Hawley gave congressional trade policy making a bad name that persists to this day. Those who enacted it promised economic growth and prosperity, but it was followed instead by plummeting exports and depression. The Tariff Act of 1930, the formal name of the Smoot–Hawley tariff, was the last general tariff revision undertaken by Congress. Four years later, Congress ushered in a new era of U.S. trade policy by delegating power to the president to negotiate agreements with other countries to reduce tariffs. This approach gave the United States its current system, embodied in the General Agreement on Tariffs and Trade and its successor, the World Trade Organization. Yet the lessons of Smoot–Hawley continue to be debated whenever trade policy issues rise to the top of the national agenda.
P. J. Cain
- Published in print:
- 2002
- Published Online:
- January 2010
- ISBN:
- 9780198203902
- eISBN:
- 9780191719141
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198203902.003.0007
- Subject:
- History, British and Irish Modern History
This chapter shows the complex ways in which Hobson's views on imperialism were influenced by his encounter of the First World War and the beginning of the next. During the First World War, his views ...
More
This chapter shows the complex ways in which Hobson's views on imperialism were influenced by his encounter of the First World War and the beginning of the next. During the First World War, his views gradually shifted back towards those he had put forward in Imperialism: A Study, as evident in The New Protectionism and especially in Democracy after the War. After the war and through to the mid-1930s, his views moved in the opposite direction, back to those expressed in An Economic Interpretation of Investment though without ever quite matching the heady optimism of that work. After the war, and to some extent because of it, Hobson's views as expressed in Imperialism: A Study slowly became more acceptable in academic circles and on the left of politics. The chapter ends with a brief summary of Hobson's views on imperialism over the period 1887-1938.Less
This chapter shows the complex ways in which Hobson's views on imperialism were influenced by his encounter of the First World War and the beginning of the next. During the First World War, his views gradually shifted back towards those he had put forward in Imperialism: A Study, as evident in The New Protectionism and especially in Democracy after the War. After the war and through to the mid-1930s, his views moved in the opposite direction, back to those expressed in An Economic Interpretation of Investment though without ever quite matching the heady optimism of that work. After the war, and to some extent because of it, Hobson's views as expressed in Imperialism: A Study slowly became more acceptable in academic circles and on the left of politics. The chapter ends with a brief summary of Hobson's views on imperialism over the period 1887-1938.
Eduardo Fernández-Arias, Ugo Panizza, and Ernesto Stein
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199271405
- eISBN:
- 9780191601200
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199271402.003.0009
- Subject:
- Economics and Finance, Economic Systems
The negative effects on exports and FDI flows of an exchange rate misalignment are amplified when the misalignment is among countries that share a regional integration agreement. Such agreements ...
More
The negative effects on exports and FDI flows of an exchange rate misalignment are amplified when the misalignment is among countries that share a regional integration agreement. Such agreements strengthen the well-established relationship between real appreciation and currency crises. We conclude that coordination to achieve real-exchange-rate consistency within blocs is key to macro stability and, a fortiori, sustainable trade agreements.Less
The negative effects on exports and FDI flows of an exchange rate misalignment are amplified when the misalignment is among countries that share a regional integration agreement. Such agreements strengthen the well-established relationship between real appreciation and currency crises. We conclude that coordination to achieve real-exchange-rate consistency within blocs is key to macro stability and, a fortiori, sustainable trade agreements.
Yung Chul Park
- Published in print:
- 2005
- Published Online:
- February 2006
- ISBN:
- 9780199276776
- eISBN:
- 9780191603051
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199276773.003.0018
- Subject:
- Economics and Finance, South and East Asia
The push towards a regional free trade arrangement has been replaced by a push for a series of bilateral agreements, notably by Japan and China. Their merits will be based on their contributions to ...
More
The push towards a regional free trade arrangement has been replaced by a push for a series of bilateral agreements, notably by Japan and China. Their merits will be based on their contributions to regional and global trade liberalization.Less
The push towards a regional free trade arrangement has been replaced by a push for a series of bilateral agreements, notably by Japan and China. Their merits will be based on their contributions to regional and global trade liberalization.
Kiran Klaus Patel
- Published in print:
- 2016
- Published Online:
- October 2017
- ISBN:
- 9780691149127
- eISBN:
- 9781400873623
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691149127.003.0001
- Subject:
- History, American History: 20th Century
This chapter sets the stage and interprets the Great Depression as a global event, as a time of testing for both democracy and capitalism. The Great Depression was not solely an American experience, ...
More
This chapter sets the stage and interprets the Great Depression as a global event, as a time of testing for both democracy and capitalism. The Great Depression was not solely an American experience, even if the United States was one of its main origins and particularly hard-hit by its consequences. The slump had global repercussions, and it fundamentally changed the way that Americans and others were connected to and interacted with the wider world. While political reactions tended to separate and segregate, the suffering was shared across latitude and longitude. By 1933, it was still unclear whether the crisis would destroy or fundamentally transform capitalism along with the fabric of capitalist societies. In the wake of the Depression, this ambivalence reverted to economic nationalism, protectionism, and a rather parochial attitude.Less
This chapter sets the stage and interprets the Great Depression as a global event, as a time of testing for both democracy and capitalism. The Great Depression was not solely an American experience, even if the United States was one of its main origins and particularly hard-hit by its consequences. The slump had global repercussions, and it fundamentally changed the way that Americans and others were connected to and interacted with the wider world. While political reactions tended to separate and segregate, the suffering was shared across latitude and longitude. By 1933, it was still unclear whether the crisis would destroy or fundamentally transform capitalism along with the fabric of capitalist societies. In the wake of the Depression, this ambivalence reverted to economic nationalism, protectionism, and a rather parochial attitude.
