The Democratic Party and Free Trade: An Old Romance

For most of the 20th century the Democrats were the party of free trade and the Republi-cans the party of protection. The Republican Congress, backed by a G.O.P. President, passed the protectionist Smoot-Hawley tariff in 1930. Most economists and virtually all Democrats blamed this tariff for the onset of the Great Depression. And for more than three decades the Democrats waved the red shirt of Smoot-Hawley against the Republicans. They warned voters that Republicans were the tool of special interests who cared not a whit about the overall performance of the economy. By the late 1960s, and especially during the 1970s and 1980s, the political winds had shifted on trade policy. The Democrats had moved toward protectionism. Increased global competition and two energy crises put pressure on the American economy and especially the jobs of the middle and lower classes–the party’s electoral base. The global economy led business to become more supportive of free trade. The Republicans followed along and equated free trade with open markets. Smaller government meant fewer favors for “special interests”–especially for industries that sought protection from the state, President Ronald Reagan believed. The parties had switched positions on trade.