Latin American Tariffs from Independence to Great Depression’ written by John H. Coatsworth and Jeffrey G. Williamson and extracted from the Journal of Latin American Studies.
The goal of the study is to bring light to the facts that…
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rise, as Latin America had utilized the forces of globalization a lot better than the remaining parts of the United States of America before the 1920s. In the decade of 1930, however, the Latin American policies started to edge away from globalization and it was a very critical time period in Latin American history. This article outlines the problems and their possible explanations which are found not from the increase in output from protection as visualized generally, but in the needs of profits, coming up with strategies to respond to the tariffs of their trading partners, and the call for reimbursing those participants of globalization who did not succeed (Coatsworth, John H, and G W. Jeffrey).
The article, ‘Always Protectionist? Latin American Tariffs from Independence to Great Depression’ is written by John H. Coatsworth and Jeffrey G. Williamson and is a part of the Latin American Studies compiled and published by Cambridge University Press.
The article starts off by exposing the fact that a majority of people do not in a good way, except some groups in Latin America including historians of economics. That fact is, import and export taxes and tolls were much, much higher in Latin America than any other part from the 1860s to 1914, when the First World War ensued. The decades leading to the First World War, also known as the first globalization boom or belle époque of Latin America, were the years in which the tariffs in Latin America kept increasing.
Knowledge of this fact gives rise to an economical as well as political question: What caused the taxes to be so high BEFORE the Great Depression and not AFTER it? It is a known fact that he high taxes are the cause of a misshaped local economy and it stunts the economy’s growth with respect to performance as well. But why the tariffs were so high was the real question.
Latin America was believed to have made the most of pre World War One belle époque and was way ahead of others in the process of
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