The Smoot-Hawley Tariff Act contributed to the Great Depression... Ernie

The Smoot-Hawley Tariff Act of 1930 contributed to the Great Depression by exacerbating and prolonging the economic downturn. This act raised import tariffs to record levels, making imported goods more expensive and thus reducing international trade.

As a result, foreign countries also raised their tariffs on American goods in response, further reducing the amount of American goods that could be sold abroad. This led to a decrease in American exports, which led to a decrease in profits for American businesses and a rise in unemployment.

Additionally, the Smoot-Hawley Tariff Act made it more difficult for American companies to obtain the raw materials they needed to produce goods. This further damaged the American economy, leading to reduced production, further job losses, and a decrease in consumer spending.

Overall, the Smoot-Hawley Tariff Act contributed to the Great Depression by worsening the already struggling American economy, reducing international trade, and leading to a decrease in profits and jobs.

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GerOttman · 61-69, M

Possibly, but only facets of this argument completely apply. We need to restore US manufacturing as a matter of policy. Other governments, not only China, are not acting in our best interests. Think about the Lebanon pager event and tell me you think every cell in the country should come from China.

I attended a wedding recently and wanted an actual "black tie". Looking online on the Zon.. I found plenty of good prices and availability. Scrolling down on each however, all were made in China except for one from Vietnam. I had to modify my search slightly to locate made in USA apparel. I did and for about the same price get my tie!

I don't favor tariffs, but often other countries don't play fair. If you expect to have good jobs in the USA we need something for those workers to do. Everything from chips to ships to shoes comes from somewhere else. We export dollars like we used to export oil. I'd would much prefer to have consumers in the US demand made in USA. Wouldn't need to worry about tariffs then.

Applied intelligently and selectively they can also give leverage in negotiation. I'll withhold judgement until the results are in.

trollslayer · 46-50, M

@GerOttman from a strategic standpoint, it is vital that we have manufacturing capability in the USA and in countries we will always be friends with.

Bearsfan67 · 56-60, M

@trollslayer this is really the big issue. If we create a manufacturing vacuum with tariffs we’ve done more harm than good. They need to be just high enough to incentivize domestic production but not so high that it promotes inflation and supply shortages.

justanothername · 51-55, M

@GerOttman Tarriffs won’t solve that problem. Finding competitive labour rates and skill sets will solve the problem.

dancingtongue · 80-89, M

Those who ignore history relive it. -- Santayana.

GerOttman · 61-69, M

@dancingtongue Those who study history, get to watch while it happens!

SomeMichGuy · M

Yes.

1olderguy20 · 61-69, M

Maybe but the Chinese dont play fair

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whowasthatmaskedman · 70-79, M

@dancingtongue And there is your key. Tariffs and Subsidies are no longer economic tools. They are political and Perty Political weapons to be wielded for Special interest groups and as long as that happens they are worse than useless, getting the wrong responses from other countries..😷

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whowasthatmaskedman · 70-79, M

@ilikeitlikethat23 Yes. But also parties that use Tariffs to support uncompetitive Industries who donate to campaigns, like Coal, Oil and Steel...😷

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GrinNude · 61-69, C

@ilikeitlikethat23 That's why he needs to surround himself with qualified people instead of yesmen, cronies and blind loyalists.

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