Hawley–Smoot Tariff Act of 1930

It originally started out to be a political vehicle by which to gain the votes of America's agricultural constituency.  Once the bill wound its way through Congress and was enacted into law, it set off a world wide trade war.  Many historians and economists believe that this act contributed to and helped to elongate the Great Depression. 


Fast forward 80 years:


"The US House of Representatives this week approved a Bill that would let companies petition for duties on imports from China to compensate for the effect of an undervalued yuan. Also this week, Brazilian Finance Minister Guido Mantega warned of a global "currency war" as his country weighs a higher tax on capital inflows."

Many academics today lament the lack of economic literacy and knowledge of history that many in Congress display.  This lack of wisdom could cause history to repeat itself.

"Those who cannot remember the past are condemned to repeat it." -- George Santayana