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.
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.
