Was the Smoot Hawley Tariff Act an initial cause of the Great Depression?
Although it did not cause the onset of the Great Depression, it did help extend it. In effect, the Smoot-Hawley Tariff Act “prolonged [the depression] and possibly deepened it around the world, not just in the United States but for other countries,” he says.Click to see full answer. Subsequently, one may also ask, did the…
Although it did not cause the onset of the Great Depression, it did help extend it. In effect, the Smoot-Hawley Tariff Act “prolonged [the depression] and possibly deepened it around the world, not just in the United States but for other countries,” he says.Click to see full answer. Subsequently, one may also ask, did the Smoot Hawley Tariff Act Cause the Great Depression?The Act and tariffs imposed by America’s trading partners in retaliation were major factors of the reduction of American exports and imports by 67% during the Depression. Economists and economic historians have a consensus view that the passage of the Smoot–Hawley Tariff exacerbated the Great Depression.Subsequently, question is, what was the lasting impact of the Hawley Smoot Tariff enacted during the Great Depression? The Smoot-Hawley Act is the Tariff Act of 1930. It increased 900 import tariffs by an average of 40% to 48%. Most economists blame it for worsening the Great Depression. It also contributed to the start of World War II. Also know, what was the Smoot Hawley Tariff Act and what role did it play in the Great Depression? Smoot-Hawley Tariff Act, formally United States Tariff Act of 1930, also called Hawley-Smoot Tariff Act, U.S. legislation (June 17, 1930) that raised import duties to protect American businesses and farmers, adding considerable strain to the international economic climate of the Great Depression.How did high tariffs cause the Great Depression?The economists argued that the tariff increases would raise the cost of living, limit our exports as other countries retaliated, injure U.S. investors since the high tariffs would make it harder for foreign debtors to repay their loans, and damage our foreign relations.
