JOURNAL ARTICLE

It's different now: Tariffs can boost U.S. jobs, wages, and the economy, finance professor says.

  • Published In: Fortune.com, 2025. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Ma, Jason 3 of 3

Abstract

The article discusses the potential impact of tariffs on the U.S. economy, as analyzed by finance professor Michael Pettis. He argues that, unlike the 1930s when the Smoot-Hawley Tariff Act was enacted during a period of low consumption and high savings, today's economy features high consumption levels. Pettis suggests that under current conditions, tariffs could increase employment and wages by subsidizing domestic producers, although he cautions that their effects can vary based on economic circumstances. He emphasizes that tariffs should be viewed as one of many tools available to improve economic outcomes, particularly in an economy characterized by excess consumption and low savings. [Extracted from the article]

Additional Information

  • Source:Fortune.com. 2025/01, pN.PAG
  • Document Type:Article
  • Subject Area:Economics
  • Publication Date:2025
  • Accession Number:182081625
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