Site for Free Markets and Free People

Saturday, January 31, 2009

Obama On His Way to Repeating Depression Policies

There were 3 main factors that caused/worsened the Great Depression:

1) Hoover's dramatic increase of tax rates;
2) Smoot-Hawley Tariff Act, which turned the country away from free trade and towards protectionism; and
3) National Industrial Recovery Act and other pro-labor union laws that increased the cost of labor

Yesterday, Obama signed an executive order that significantly increases the strength of unions. There is currently legislation in Congress that focuses on protectionism, prompting some to say that Canada's honeymoon with Obama is over. And of course, we all know where Obama stands on taxes.

This is why history lessons should be mandatory for Congress.