LCACM

U.S.-China Trade Spat: Warning of Worse to Come?

During the 1930 Depression, Smoot-Hawley hurt the US economy as the US used to enjoy trade surplusses. When a country enjoys trade surplusses Protectionism hurts its exports. However, when a country has trade deficts, common sense indicates that Protectionism helps the economy. Currently the US is suffering from huge trade deficits, so a Smoot-Hawley type act would greatly benefit US manufacturers.
If Defense spending is good, why is Protectionist legislation considered bad?
Without strong Protectionism, the US Treasury will not have the tax resources to support a strong Defense in these highly troubling times.