What Does the 1929 Have in Common With 2025?
A Genius Idea to Increase Tariffs Amid Stocks Plummeting and People Complaining Costs of Goods Are Too High...
Trump has recently increased tariff’s on our trading partners around the world, but what they really means - is we are losing markets for our own products, and making it harder for Americans to buy products. But why would “insignificant details” stop the self-proclaimed, genius-in-chief. Yet the facts speak louder than words.
The Smoot–Hawley Act
The Tariff Act of 1930, commonly known as the Smoot–Hawley Tariff Act, was a highly protectionist trade measure that was signed into law in the United States by then President Herbert Hoover, on June 17, 1930. And the results of that Act, were certainly not good…
What that Act did, was raise U.S. tariffs to nearly 60% on tens of thousands of imported goods, resulting in higher prices for Americans, sparking retaliation and the collapse of global trade. Many economists believed the tariffs put in place just seven and a half months after the crash, set the Great Depression in motion. The stock market crash that took place on October 29, 1929 - is a day often referred to as "Black Tuesday." That was the day Wall Street investors traded about 16 million shares on the New York Stock Exchange in one single day. That day will live on in infamy, as about $14 billion of stock value was lost - wiping out thousands of investors.
Comparing that stock market loss in 1929 to today - in today’s dollars, that loss would amount to a little over $258 billion with inflation rate at around an average of 3.08% or $258,390,058,479.53. To put this in perspective, the greatest stock value market loss of 1929, adjusted for today’s value, is still far less than Elon Musk’s net worth - even after the Tesla shares lost significant value due to his increasing unpopularity (caused by his activities in ‘DOGE,’ Nazi salutes and more), yet he’s still clocking in at around $316 billion, down from $432 billion from before.
And as a consequence of the historic 1929 stock market crash, there was a ripple effect felt at home and around the world. All of this putting in motion extraordinarily hard times for the American people. Many Americans lost their homes and livelihoods as a result of the stock market crash and the unpopular Smoot–Hawley Tariff Act that followed. I know, my own parents told me of the hardships they endured, losing their homes, their livelihoods - everything they had. Is American headed that way again?
…on June 13, 1930, that the Senate passed the Smoot-Hawley Tariff, among the most catastrophic acts in congressional history.
CNN has represented that US stock markets plunged today, with the worst day for all three major market indexes since 2020 and the US dollar wiping out all gains since Trump’s reelection.
Who’s Paying the Freight?
There is no question, slapping tariff’s on purchased goods will be paid by American consumers - and that is an extremely bad idea; especially now that other nations are retaliating in kind. Farmers in the midwest will now have no pre-planned destination for their soybean crops, as we know China has been midwestern farmers’ largest market. The million-dollar question is, Why would any president do this to hurt the American people? Especially since Trump inherited an economy from Biden, one that was going gang-busters, and was the envy of the world?
Subversive Plot Put in Motion
Or is it a subversive plot by project 2025 architects, to put small American farmers out of business? That is, so its architects and cronies can quickly buy up this farmland and businesses at foreclosure, fire-sale prices? Just like what happened after the Great Depression where people lost everything to those with deep pockets. So who needs immigrants…especially when they’ll be a captured audience of desperate, struggling, and destitute Americans groveling for work? No one is better positioned than billionaires to scoop it all up - and that includes Trump.
And this time around, they’ll be snatching it up to build factories and factory house condos for the next generation of indentured workers. And no doubt it will be in the same place and on the same land, where these proud businessmen, small farmers, landowners once stood…
Soybeans, Tariffs & Farmers - just one example:
Tariffs, especially retaliatory ones, have been shown to negatively impact soybean farmers by increasing costs, reducing export markets, and effectively leading to lower prices and decreased profitability.
Who is the biggest purchaser of US soybeans?
China is a major purchaser of US soybeans, and in response to Trump’s recent tariff hikes, China is imposing their own on American exports. All of this leading to a decline in US soybean exports to China.
Lower Prices:
The reduced demand due to tariffs can lead to lower prices for soybeans, impacting farmers' income.
Increased Input Costs:
Tariffs can also increase the cost of inputs like fertilizer and equipment, further squeezing farmers' profits.
Trade War Fallout:
The 2018 trade war with China, which included tariffs on soybeans, resulted in significant losses for the U.S. agricultural industry, with soybeans accounting for a large portion of those losses. What will it be this time around?
Impact on Rural Economies:
The decline in soybean prices and exports can have a ripple effect on rural economies, impacting businesses that serve farmers and the overall economic health of these areas.
Concerns about Future Trade:
Farmers are concerned that continued trade tensions and tariffs could lead to further losses and instability in the agricultural sector they worked very hard to establish.
During the 2018 trade war with China, U.S. agriculture experienced over $27 billion in losses, with soybeans accounting for 71% of those losses. Soy farmers continue to struggle with long-term reputational impacts, as the markets they worked for years to build—over 40 years for China.
For more information on this, visit: American Soybean Association (ASA).
To learn more about the devastating consequences of the Smoot-Hawley Tariff Act, that information can be found here.
For an interesting read on "Soybeans, Tariffs, and MAGA’s Bitter Harvest" take a look former Trump lawyer, Michael Cohen’s in-depth analysis, here on Substack.
Notes:
https://www.theguardian.com/business/2025/apr/03/global-markets-turmoil-trump-tariffs-wall-street-downturn
https://soygrowers.com/news-releases/tariffs-are-not-fun-farmers-are-frustrated/
Copyright 2025, Mary Kay Elloian, MBA, JD, Esq. - The Legal Edition® - Legal, Business & Policy News - TheLegalEdition.com - All Rights Reserved.
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