The Ghost of Smoot-Hawley: Ferris Bueller, Tariffs, and Trump’s Trade War
The recent surge in tariff discussions has resurrected a familiar cinematic artifact: the agonizingly dull economics lesson from John Hughes’s classic 1986 film, "Ferris Bueller’s Day Off." In a movie celebrated for its carefree spirit and rebellious joy, a brief, almost surreal scene delves into the complexities of international trade, specifically, the infamous Smoot-Hawley Tariff Act of 1930.
The film, a quintessential coming-of-age story set against the vibrant backdrop of 1980s Chicago, follows the charismatic Ferris Bueller (Matthew Broderick) as he orchestrates an elaborate escape from the drudgery of high school. He convinces his best friend, Cameron, and his girlfriend, Sloane, to join him for a day of unadulterated freedom, navigating the city’s landmarks and reveling in moments of spontaneous adventure.
Amidst the whirlwind of joyrides and museum visits, Hughes inserts a starkly contrasting scene, a moment of educational purgatory that highlights the soul-crushing monotony Ferris is so desperate to avoid. Enter Ben Stein, the former Nixon speechwriter turned entertainer, in a role that would define a significant part of his later career.
Stein plays a droning economics teacher, utterly disconnected from his apathetic students. In a classroom bathed in the pale light of boredom, he attempts to explain the intricacies of the Smoot-Hawley Tariff, a topic that, even in the film’s context, elicits more yawns than intellectual curiosity.
"In 1930," Stein intones, his voice as dry as desert sand, "the Republican-controlled House of Representatives, in an effort to alleviate the effects of the… Anyone? Anyone?" The camera pans across a sea of blank faces, glazed eyes, and slumped shoulders. "The Great Depression. Passed the… Anyone? Anyone?" The silence is deafening, broken only by the faint hum of the classroom lights and the occasional rustling of papers.
"The tariff bill. The Hawley-Smoot Tariff Act, which… Anyone? Raised or lowered? Raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression."
Stein proceeds to delve into the Laffer curve, an economic concept that explores the relationship between tax rates and government revenue. As he continues his monotone lecture, the camera focuses on a student asleep at his desk, a puddle of drool slowly expanding beneath his chin. The scene is a masterclass in comedic timing, contrasting the absurdity of the situation with the profound implications of economic policy.
Interestingly, Stein’s role wasn’t originally intended to be on-screen. Initially, he was only meant to provide a voiceover. However, his delivery was so captivatingly dull, so perfectly capturing the essence of academic tedium, that Hughes decided to include him in the film, placing him directly in front of the somnambulant students. The scene itself was largely unscripted. Hughes simply asked Stein to teach something he knew well. Stein, with his background in economics and political commentary, naturally chose to discuss the Great Depression and the impact of tariffs on economic policy.
The iconic scene has taken on renewed relevance in the face of President Trump’s trade policies, which have included imposing tariffs on various goods imported into the United States. Economists and historians have been quick to draw parallels between Trump’s actions and the Smoot-Hawley Act, warning of the potential for similar negative consequences.
The Smoot-Hawley Tariff Act, signed into law by President Herbert Hoover at the onset of the Great Depression, raised import duties on thousands of goods. The intention was to protect American industries from foreign competition and stimulate domestic production. However, the act backfired spectacularly.
Instead of bolstering the American economy, Smoot-Hawley triggered a wave of retaliatory tariffs from other countries. International trade plummeted, exacerbating the global economic crisis and contributing to the severity and duration of the Great Depression.
While it’s unlikely that Trump’s tariffs will plunge the United States into another depression, the potential risks are undeniable. The global economy is far more interconnected today than it was in the 1930s, making it even more vulnerable to disruptions in trade flows.
Ryan Sweet, chief U.S. economist at Oxford Economics, acknowledges the differences between the economic landscape of 1930 and today, stating that the economy is in "significantly better shape." However, he also offers a cautious analogy, comparing tariffs to a "high school relationship," emphasizing their inherent complexity.
The lesson from "Ferris Bueller’s Day Off," and the historical event it references, is clear: protectionist trade policies can have unintended and devastating consequences. While the desire to protect domestic industries is understandable, tariffs can disrupt global supply chains, raise prices for consumers, and ultimately harm the very economies they are intended to help.
The scene serves as a potent reminder of the importance of international cooperation and the dangers of economic isolationism. As President Trump continues to pursue his trade agenda, the ghost of Smoot-Hawley lingers, a cautionary tale whispered from a high school classroom in a beloved 1980s film. The question remains: will policymakers heed the warning, or will history repeat itself, with potentially disastrous results? The comatose classroom of "Ferris Bueller" waits, silently, for the answer.
