In the 1930s Clair Wilcox of Swarthmore College organized a petition by economists "that any measure which provided for a general upward revision of tariff rates be denied passage by Congress, or if passed, be vetoed." It was signed by one-third of all economists in the United States at the time, of all political persuasions. A month later, the Smoot-Hawley Tariff was passed.
a. Why did economists oppose the tariff?
b. Demonstrate the effect of the tariff on the price of goods.
c. How would the tariff help the economy if other countries did not institute a retaliatory tariff?
d. What would be the effect on the macroeconomy if other countries did institute a retaliatory tariff?