Rerunning the 1930s: Why We Never Learn?

Let’s take a trip down memory lane. Because apparently, nobody in Washington did.

March 2025’s tariff tantrum isn’t just a policy blunder.

It’s a rerun of America’s greatest economic hits, remastered for the TikTok era.

From Hoover’s 1930s missteps to Reagan’s 1980s deregulation fever, we’re stuck in a time loop where politicians keep hitting “repeat” on bad ideas.

Buckle up, this isn’t just about tariffs.

It’s about why we never learn.

1930s Redux: Smoot-Hawley’s Zombie Tariffs

Picture 1930.

Herbert Hoover signs the Smoot-Hawley Tariff Act, slapping taxes on 20,000 imports to “save American jobs.”

The result?

Global trade partners retaliated, U.S. exports crashed 67%, and the Great Depression deepened.

Economists begged Hoover to stop. He didn’t.

Fast-forward to March 3, 2025: Trump’s 25% tariffs on Canadian cars and Mexican avocados dropped with similar fanfare.

Auto stocks imploded (Ford -5%, Tesla -9%), and China retaliated with tariffs on Iowa pork.

“It’s like watching a toddler try to fix a leaky dam with a hammer,” grumbled a Wall Street trader.

The parallels are almost poetic.

In 1930, U.S. farmers burned crops they couldn’t sell abroad.

In 2025, Iowa soybean farmers are stuck with a 15% Chinese tariff and a lot of unsold inventory.

“History doesn’t repeat itself, it just gets more expensive,” quipped a Nebraska farmer, eyeing his tractor’s $60,000 price tag (up from $50k pre-tariff).

Musk’s 1980s Flashback: Reaganomics on Rocket Fuel

Elon Musk’s latest stunt, slashing 40% of OSHA staff via his “Department of Government Efficiency” (DOGE), is pure Reagan-era nostalgia.

In the 1980s, Reagan gutted regulations, insisting “government is the problem.”

The result? The Savings & Loan crisis, which cost taxpayers $132 billion.

Musk’s version?

Axing $16.4B in Ukraine aid (“Zelensky’s ungrateful”) and halting 78 safety probes into Tesla factories.

“It’s deregulation with a flamethrower,” said a labor lawyer, noting Tesla’s 27% stock drop.

But here’s the twist: Reagan’s policies birthed Silicon Valley. Musk’s?

A bizarre mix of crypto chaos and pharmacy robots.

CVS Health soared 46% this year by replacing pharmacists with machines.

Southern Company, a boring utility stock, jumped 33%.

“When the circus comes to town, bet on the popcorn stands,” shrugged a hedge fund manager.

Dot-Com Déjà Vu: AI Hype Meets Reality

Remember 1999? Pets.com sold $1.2 million in sock puppets before crashing.

Today’s AI stock frenzy feels just as shaky.

Nvidia posted $43B in revenue last quarter and still dropped 7% this week.

“AI is the new dot-com bubble,” warned a Morgan Stanley analyst, citing slowing data center orders.

Even Bitcoin’s 8% surge to $90k (thanks to Trump’s “Crypto Reserve” tweet) couldn’t mask the panic.

Solana’s 62% spike and 30% crash mirrored the NASDAQ’s 2000 rollercoaster.

Meanwhile, TSMC, Taiwan’s chip giant, quietly scored a $100B Arizona factory deal, exploiting CHIPS Act loopholes.

“Trade wars create winners,” laughed a TSMC exec. “Just not in America.”

The 2018 Playbook: Trump’s Greatest Hits (Vol. 2)

Trump’s 2018 trade war with China should’ve been a cautionary tale.

Instead, it’s a blueprint.

Back then, U.S. soybean exports to China plummeted 94%, and Walmart hiked prices 10-30% on electronics.

Farmers got $28B in bailouts. In 2025? The sequel’s worse:

• Auto tariffs: 25% on Canadian/Mexican imports → $8k-$12k price hikes on trucks/EVs.

• Consumer pain: Households face $1,600-$2,000 in annual costs (Yale study).

• Global fallout: Canada taxed $20B in U.S. goods; Europe’s plotting $1.3T in counter-tariffs.

“We’re stuck in a bad country song,” groaned a Kentucky bourbon distiller, now paying 25% tariffs to sell in Toronto.

The Big Question: Are We Doomed?

Maybe not. After Smoot-Hawley, FDR’s New Deal rebuilt the economy.

After the 2008 crash, clean energy boomed.

Today’s glimmers of hope: TSMC’s factories, AI-driven healthcare bots, and green tech subsidies.

But survival requires learning from history.

Your 2025 Survival Kit:

1. Think like the 1930s: Hoard cash. Avoid debt. Buy utilities (Southern Co. +33%).

2. Copy the 1980s: Bet on automation (CVS robots) and defense stocks (Lockheed +18%).

3. Outsmart 2025: Track China’s moves. They’ve survived 5,000 years of chaos—they’ll outlast a tweetstorm.

“Trade wars end. Markets adapt.

But maybe skip the self-sabotage next time?” mused Janet Yellen, now retired and (presumably) stress-knitting.

So grab popcorn (Canadian-made, tariff-free), watch the fireworks, and remember:

Every crisis is just history’s rerun.

The question is will you change the channel?

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