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Economics

The Political Economy of Trade Policy and Protectionism

Quick fact

Although most economists endorse free trade, the United States' Smoot-Hawley tariff of 1930 raised average tariffs to over 40%, and many economists believe it worsened the Great Depression; yet similar protectionist pressures persist today.

Why this is interesting

If free trade makes everyone richer, why do governments keep erecting trade barriers that economists say are harmful?