Trying to Duplicate Conditions of 1930

The Obama administration released trade policy agenda this week leaving investors short on details and long on speculation. The 2009 Trade Policy Agenda fell short of declaring the outright refutation of free trade, however failed to declare any strong support for such an agenda. Obama has repeatedly emphasized the need for the United States to work toward making trade "fairer" rather than freer. While nations around the world await the direction of the administration on this front, investors have reacted with understandable trepidation.

As the administration has taken over a slumping economy, many have been reticent to hastily condemn the actions of President Obama. In his few short months, having increased taxes and virtually ignored the illiquidity of credit markets while moving on to health care reform, observers await the final strike that could exactly duplicate conditions that shifted the United States from a recession to the Great Depression in 1930. The infamous Hawley-Smoot provisions await reproduction. If the circumstances were not so dire the pure foolishness might otherwise seem laughable. Does anyone think the Obama administration will not turn towards protectionism when unemployment hits 10%?