“An Economic Stupidity”

It was a warm early May evening. The glistening waters the Potomac gave a gentle glow amid the sunset setting a proper backdrop for the company of vagabonds. A lovely meal of roast duck had been served to the economic leaders of America – the magnates of industry, who’d congregated on the White House to discuss the continued response to the worsening conditions of the market crash that previous October. One such solution, a bicameral effort proposed by Senator Smoot and Representative Hawley, sought to impose an unheard of tariff on over 20,000 imported products. The aim? Eliminate foreign competition.

Harvey Firestone sat quietly smoking a H. Upmann, contorted in his facial expression a bit, deep in his thoughts.

“Reed Smoot, quite the cowboy, Herb.”

President Hoover glanced over, “Harvey, he’s protecting our livestock and grain yields from German competition. We need it, you know it’ll lead to price stabilization in the midwest. The markets are panicked and they need calm. We’re sitting on an overproduction surplus. Something has to be done. After all, its how we gained leverage on eastern Europe and Russia in the wake of the Bolsheviks’ catastrophe under Wilson.”

“Which did nothing but prop them up and encourage those disheveled hooligans here at home.” snapped Henry Ford, sitting before a plate barely touched. His was a mind consumed by anger.

“Henry, we all know your stance on the bolsheviks, no need to revisit it at the dining table. They’ll burn out in a year. They’re clinging to life as it is. Besides, Mother Jones and the like are merely reflection of the times. Strong economy prevents attraction to their ideology.” Hoover barely could cover a dismissive tone.

“Ah yes, all in the name of progress, Herb, all in the name of progress. Workers of the world and all that.”

“You’re dreadfully quiet tonight, Thomas.”

“Herb, you should know full well my thoughts. Edison power made the production of every sector of manufacturing easier and cheaper, Europe can’t compete long term. They’ll retaliate with tariffs of their own and the trade deficit the papers are claiming will go sour long term. My own accountants are telling me we’ve run a surplus in fact and if we wait this one out, the markets will follow suit.”

“Veto this nonsense, Herb. The hell it will unleash…veto this.”

“A trade war will certainly follow continued instability.” Harvey Firestone quietly added, examining closely the ash pattern on the H. Upmann.

” But we have to do something, gentlemen.”

Henry Ford, the stern, hardened man, had an exceptionally serious look on his face as he turned a darker shade of red. There was no pulling the steely killer’s gaze from Hoover. It was apparent what was on his mind towards his longtime friend.

“Its an economic stupidity, Herb, and you’ll be lucky to survive it. We all will.”

…and Smoot-Hawley was signed into law, exports nearly ceased, and unemployment went to 25%. A rate which would remain until 1940.