The Great DepressionDonald Luskin

Thankfully, we’re not repeating all the mistakes of 1937, but Congress and the Obama administration are flirting dangerously with one of them by failing to extend the expiring low tax rates for all Americans. What’s worse, we’re close to repeating the mother of all policy errors, the one made not in 1937 but in 1930, the one that started the Great Depression. We’re on track to resurrect the 1930 Smoot-Hawley Tariff Act. Once the election has passed, Luskin hopes cooler heads will prevail on both sides of the aisle. But sometimes in the heat of politics cooler heads do not prevail. If that happens now with issues as critical as those we face, then the economy and the stock market will be doomed to repeat the tragedies of the 1930s.

Luskin is chief investment officer at Trend Macrolytics LLC.

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