The Smoot-Hawley Tariff Act, passed in 1930, did not cause the Great Depression of 1929, but it made it worse.Here’s the breakdown:What was Smoot-Hawley?• It raised U.S. tariffs on over 20,000 imported goods to protect American farmers and industries.• It was signed into law by President Herbert Hoover in June 1930, after the stock market crash of October 1929.How did it affect the Depression?• Other countries retaliated by imposing their own tariffs on U.S. goods.• This led to a sharp drop in international trade, which hurt global economies.• U.S. exports plummeted, worsening unemployment and economic contraction.So, did it cause the Great Depression?• No — the Depression began before Smoot-Hawley, caused by factors like:• The stock market crash in 1929• Bank failures• Overproduction and falling demand• Weaknesses in the banking system and poor monetary policyBut Smoot-Hawley definitely deepened and prolonged the economic pain.Want a quick timeline or visual summary of the events?
Source: (no subject) – frederick.lapides@gmail.com – Gmail
