Electrification, the Smoot-Hawley Tariff Act
and the Stock Market Crash
The Smoot-Hawley Tariff Act
was the last general tariff legislation passed by Congress.
President Hoover signed the Smoot-Hawley Tariff Act
in June 1930, well after the Depression had begun.
That is certainly what happened after Congress approved the protectionist Smoot-Hawley Tariff Act
in 1930 in a misguided effort to create American jobs.
This observation is hardly new; the debate over free trade came to a head just before the passage of the Smoot-Hawley Tariff Act
of 1930, (9) which put a serious kibosh on international exchange.
That the 1920s was a decade of real innovation and wealth production is indisputable, as is the fact that myriad controls, starting with the Smoot-Hawley Tariff Act
, exacerbated and sustained the crash.
This policy prescription is not only forbidden by the World Trade Organization (WTO), to which the United States subscribes, but such protectionism could potentially set off a global trade war, similar to the infamous Smoot-Hawley Tariff Act
of 1929, which exacerbated and prolonged the Great Depression.
In 1930, the US government passed the Smoot-Hawley Tariff Act
, which raised tariffs on 20,000 imported goods--despite a petition opposing the legislation signed by 1,028 economists.
As businesses started to fail, Congress passed the Smoot-Hawley Tariff Act
in 1930 to protect American companies.
As matters stand, these hapless farmers from Africa and Latin America, to name a few, are already facing unfair competition from US producers who take shelter under the infamous Smoot-Hawley Tariff Act
of 1930 whose protectionist legislation has become a convenient tool for their advocates around the world.
Shades of the Smoot-Hawley Tariff Act
- a classic piece of US protectionism that arguably turned the 1930s depression into a world war - have, commentators say, been hanging over the annual Davos bun fight in recent days.
That could lead to protectionism in a number of guises, even if the United States steers clears of anything like the 1930 Smoot-Hawley Tariff Act
that prompted a series of retaliatory tariff hikes around the world.