The World Economic Conference of 1933 met to deal with America's Great Depression, but, without consulting anyone, FDR declared that the U.S. would not agree to the proposal because he wanted to take the U.S. off the gold standard in order to inflate the dollar. The gold-supporting British and French were horrified; Nazi Germany was delighted.
The progressive period birthed the cancerous growth of the welfare/warfare state, fake capitalism, the middle way, neomercantilism, and the corporate state. Morgan and Rockefeller men warred with each other over many issues and many generations.
Despite the drive for monopoly, only oil, sugar and corn products ended up dominated by a particular company. Bigger was not better. Biggest was not best. Smaller and more mobile was more competitive. Major inventions are still coming from small firms.
In the 19th Century and the beginning of the 20th, the rise of big business on the free market could not create monopolies and cartels. Only government could do that. Government tried. Government failed.
Why did people move to the new world? The benefits outweighed the costs. The explorers were driven by the economic philosophy of mercantilism. Government and business partnered to build a nation state. Money was thought to be wealth, but it is not. Government ships, soldiers, and subsidies gave the power of kings behind businesses.
The study of U.S. history seen through the lens of economic theory teaches us lessons like: (1) Why did America do so well economically?, (2) Why do we have the problems of war, terrorism, and immigration?, (3) What results from the growth of government?, ...
There is a reason for Krugman to pursue this false narrative, and it is not because he actually believes it.
"The object aimed at in the punishment of vices is to deprive every man of his natural right and liberty to pursue his own happiness under the guidance of his own judgment and by the use of his own property."
In the real world, erecting higher trade barriers will reduce economic output in both countries, whereas reducing trade barriers will lead to greater output.
We are going to have world central planning in order to control the climate and protect the holy earth from the effects of industrialization. Oh, and tax us good and hard in the process.
