The panic of 1893

Investment Analysis Clubs Macro Economic Trends and Risks
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With the Forgotten Depression and the Great Depression, the tariffs came after the downturns began.

But

The McKinley Tariff, which is considered to have contributed to the early 1890s depression, was enacted on October 1, 1890. This act, framed by Representative William McKinley, raised the average duty on imports to almost 50%. This tariff is linked to the economic downturn of 1893, also known as the Panic of 1893.

It can take years to get to the bottom under more similar circumstances to today.

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In the Dow Jones index, the stock returns for 1890, 1891, and 1892 were -14.15%, 17.62%, and -6.56%, respectively. These returns are based on the Dow Jones index data as reported by Slickcharts.

Deflation did occur in 1890, 1891, and 1892, particularly during the period of the “Long Depression”. While the deflationary trend had been ongoing since the 1870s, it reached a peak in the early 1890s.

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TIG has said the intent is to recreate the “Gilded age”.

“We were at our richest from 1870 to 1913. That’s when we were a tariff country. And then they went to an income tax concept,” Trump said days after taking office. “It’s fine. It’s OK. But it would have been very much better.”

According to TIG. the “Gilded age” ended with the introduction of the income tax, which was coupled with a reduction in tariffs.

Clearly, the stated objective is for the “JCs” to prosper. The rest of us? Maybe not so much.

Steve

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Dear Steve,

Right now, raising the income tax is probably as realistic going to happen.

Perhaps we will start to get leadership that understands economics before running for office.

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Nah. Can’t happen anymore. Short term tax cuts for “JCs” will always take priority.

Screenshot 2024-03-16 at 11-59-50 Fact Check Viral Pic of Bill Clinton Forecasting 'Debt-Free America' by 2013 Didn't Age Well
Screenshot 2024-03-16 at 11-59-50 Fact Check Viral Pic of Bill Clinton Forecasting 'Debt-Free America' by 2013 Didn't Age Well565Ă—388 285 KB

Steve

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Dear Steve,

Tax hikes have to happen. Part of a new reality.

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Experience in Michigan tells me that the tax increases will be on the Proles.

Steve

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Trump’s industrialists versus McKinley’s industrials. McKinley’s were on a tear gearing up against Europe. Perhaps why the market crash took two years to begin.

We are not gearing up much against China.

Unless we raise corporate taxes we won’t see the US gear up industrial production.

The years 1891 and 1892 were mixed one up and the other down for the Dow. The crash happened in 1893.

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From memory, 1891 was down -17% on the Dow and 1892 was up 6%, while 1893 crashed. In a certain sense 1891 to the end of 1893 was a market crash.

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"TIG has said the intent is to recreate the “Gilded age”.

Ah yes, the era of the Poor House, and “meat wagons” to pick up the dead bodies of the homeless in the streets, across America. All Americans should aspire to make America great again ala The Gilded Age, lol.

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It worked for the Morgans and Vanderbilts. That is what matters. Right?

Steve