No policy is going to be correct all the time, just as no policy is going to be incorrect all the time. Choosing to apply economic and military pressure against Italy was the right thing to do in that specific set of circumstances. Just because it was the right thing to do in that circumstance doesn’t mean it was the right thing to do in every other circumstance. I would posit that broadly, this kind of guilty-by-association economic harm is the wrong choice more often than not.

Nothing happened to the US after Paperclip.