The horrors of the Smoot-Hawley Tariff Act

AMONG the many quotes of American philosopher and essayist George Santayana, the one that has been repeated most often is this: Those who cannot remember the past are condemned to repeat it.

How true this is in the context of financial markets and this time, also in the unfolding of the current trade war between US and China. Using history as our guide, it is clear that high tariffs and protectionism destroy countries and their economies.