Trade wars and the aftermath.

The Smoot Hawley era trade wars and their aftermath look similar to present day. After the enactment of the Smoot Hawley tariff regime, GDP and consumption both declined by a cumulative 35% over a two-year period and the Dow Jones industrial average decline from a peak of over $380 in mid-1929 to a trough of $41 in mid-1932. It took the stock market 29 years to recover, and GDP and personal consumption did not recover fully until the U.S. entry into World War II in 1941. Smoot Hawley was repealed within 3 years. How long will the current tariff regime last? At the very least, the uncertainty around these policies is not good for investment or growth. For our gaming industry friends, keep a keen eye on consumer patterns.