The Misleading Hype Over Past Tariffs and Nike's Success
- by Lutz Meier
- 2 Min.
Impact of 1921 U.S. tariffs nearly hindered Nike's emergence - U.S. tariffs in 1921 nearly hindered Nike's emergence.
In the aftermath of World War I, the echoes of nationalism and protectionism filled the air, paving the path for the Republicans' ascendancy to power. Before Warren G. Harding took the helm in 1921, two Republican representatives had proposed the Fordney-McCumber Tariff Act – set to raise tariffs to an average of 38.5% from 1922, among the world's highest.
- Tariffs
- Nike
- Protectionism
- USA
As it turns out, the fabled tariffs didn't play a significant role in Nike's meteoric rise. The truth is far more complex.
- Unraveling the Myth
It's essential to set the record straight. Nike, founded in 1964 as Blue Ribbon Sports, became Nike Inc. in 1971 – decades after the introduction of the tariff act in 1922. Consequently, the legislation couldn't have directly influenced Nike's early growth since it was still a non-existent entity back then.
- Contextual Shifts
Nike's formative years and subsequent growth transpired in an entirely different economic landscape, in the 1960s and beyond. The tariff act that dominated the 1920s simply didn't hold sway over the market conditions that shaped Nike's rise to prominence.
- Fordney-McCumber's Broad Economic Effects
Though the legislation raised duties on imported goods to protect American manufacturers and farmers, it worsened international trade relations and fostered retaliatory tariffs. These barriers played a part in exacerbating the global economic downturn, eventually leading to the Great Depression in 1929. However, the impact on domestic industries was mixed: some benefited, while others languished due to reduced exports.
In conclusion, the Fordney-McCumber Tariff Act of 1922 did not directly impact Nike's early growth or business trajectory. Instead, a myriad of factors from technological advancements in athletic footwear to later trade conditions in the mid-20th century shaped Nike's journey to global dominance.
- Despite the Fordney-McCumber Tariff Act being introduced in 1922, long before Nike's inception in 1964, some argue that it could have an indirect impact on business and finance within the industry through its protection of American manufacturers.
- In the given article's context, the employment policy of Nike, a multinational corporation operating in the business sector, remains untouched when discussing the effects of tariffs and protectionism in the early 20th century.
- As the global economic conditions shifted in the mid-20th century, the policy landscape evolved to accommodate industry needs and demands. The community, politics, general-news, and finance sectors had varying responses to these changes, making it challenging to draw a direct link between employment policies from the 1920s and the growth of companies like Nike in a different era.
