Part 3/7:
Throughout history, tariffs have often been used as a tool for negotiation and settlement of strategic economic interests. However, Sowell argues that the method’s execution can lead to greater uncertainty and instability, causing individuals and businesses to hold onto their money out of fear of future repercussions. He draws a parallel to Franklin D. Roosevelt's approach during the 1930s, emphasizing the importance of flexible policy decisions that adapt to economic realities. When leaders have the autonomy to create and modify rules, unpredictability becomes a prominent concern, impacting investment and market activity.