Hanke Warning: Trump's Tariffs May Repeat the 1930 Great Depression Market Crash!

Renowned economist Steve Hanke recently strongly criticized Trump's tariff policy on social media X, claiming it could trigger an economic disaster similar to that of the 1930s. He pointed out that, according to the analysis of former colleague David Stockman, Trump's proposed tariffs would increase the costs for American businesses by $500 billion, bluntly stating that "tariffs are an economic wrecking ball."

Hanke further warned that the current economic policies are similar to the environment when the "Smoot-Hawley Tariff Act" was implemented in 1930. At that time, due to a tightening of the money supply and the introduction of the tariff act, the market quickly crashed, with the stock market falling 83% in two years. He believes this situation could repeat itself, plunging the U.S. into a deeper economic crisis.

Hanke criticized Trump and his advisors for underestimating the economic consequences, arguing that they have no understanding of the potential risks. "If this doesn't change, America will face huge trouble," he said, "I’m telling the truth, this is the dumbest thing I’ve ever seen."