Zyobot
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Post by Zyobot on May 25, 2019 21:42:24 GMT
Though the Great Depression would brutalize the 1930s world, the addition of the Smoot-Hawley Tariff Act likely worsened the ensemble. Passed by the United States Congress on June 17, 1930, it slapped high import duties on foreign products in the midst of a severe economic crisis.
Though it sought to protect American workers and businesses, the bill invited retaliation from other nations as they passed tariffs of their own. Banks failed and international trade took a nosedive, leaving the globe in financial catastrophe.
Had the Smoot-Hawley Tariff Act never been implemented, how would the Great Depression--as well as history as a whole--have played out differently?
Thank you in advance,
Zyobot
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stevep
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Post by stevep on May 26, 2019 11:44:03 GMT
Though the Great Depression would brutalize the 1930s world, the addition of the Smoot-Hawley Tariff Act likely worsened the ensemble. Passed by the United States Congress on June 17, 1930, it slapped high import duties on foreign products in the midst of a severe economic crisis. Though it sought to protect American workers and businesses, the bill invited retaliation from other nations as they passed tariffs of their own. Banks failed and international trade took a nosedive, leaving the globe in financial catastrophe. Had the Smoot-Hawley Tariff Act never been implemented, how would the Great Depression--as well as history as a whole--have played out differently? Thank you in advance, Zyobot
I have seen it suggested, although from sources in my youth in the 70s and political viewpoints have changed since then, that Britain was seeking to organise an agreement to reduce tariffs internationally in an attempt to revive world trade and that this basically killed the idea. How accurate that is I don't know but if some general lowering of trade barriers were to occur you are likely to reduce the impact and duration of the depression. Probably initially in the major trading powers which then moves outwards to other nations as markets revived and people get money in their pockets and can afford more goods.
As it was even Britain, which had been fanatically committed to free trade for nearly a century finally introduced tariffs the following year IIRC. Unfortunately this wasn't coupled with government support for businesses, instead laissez faire stayed a serious problem which increased and extended the impact, at least in Britain.  |
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Zyobot
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Post by Zyobot on May 26, 2019 16:29:48 GMT
Though the Great Depression would brutalize the 1930s world, the addition of the Smoot-Hawley Tariff Act likely worsened the ensemble. Passed by the United States Congress on June 17, 1930, it slapped high import duties on foreign products in the midst of a severe economic crisis. Though it sought to protect American workers and businesses, the bill invited retaliation from other nations as they passed tariffs of their own. Banks failed and international trade took a nosedive, leaving the globe in financial catastrophe. Had the Smoot-Hawley Tariff Act never been implemented, how would the Great Depression--as well as history as a whole--have played out differently? Thank you in advance, Zyobot
I have seen it suggested, although from sources in my youth in the 70s and political viewpoints have changed since then, that Britain was seeking to organise an agreement to reduce tariffs internationally in an attempt to revive world trade and that this basically killed the idea. How accurate that is I don't know but if some general lowering of trade barriers were to occur you are likely to reduce the impact and duration of the depression. Probably initially in the major trading powers which then moves outwards to other nations as markets revived and people get money in their pockets and can afford more goods.
As it was even Britain, which had been fanatically committed to free trade for nearly a century finally introduced tariffs the following year IIRC. Unfortunately this wasn't coupled with government support for businesses, instead laissez faire stayed a serious problem which increased and extended the impact, at least in Britain. Hmm, interesting; I should look into the economic history of Britain further (though I don't know of many in-depth sources off the top of my head, unfortunately). Out of curiosity, what do you think of discussion that has taken place in the AH.com version of this thread? Since it's in the 'After 1900' section, I think you can access it even without membership. |
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stevep
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Post by stevep on May 26, 2019 18:14:14 GMT
I have seen it suggested, although from sources in my youth in the 70s and political viewpoints have changed since then, that Britain was seeking to organise an agreement to reduce tariffs internationally in an attempt to revive world trade and that this basically killed the idea. How accurate that is I don't know but if some general lowering of trade barriers were to occur you are likely to reduce the impact and duration of the depression. Probably initially in the major trading powers which then moves outwards to other nations as markets revived and people get money in their pockets and can afford more goods.
As it was even Britain, which had been fanatically committed to free trade for nearly a century finally introduced tariffs the following year IIRC. Unfortunately this wasn't coupled with government support for businesses, instead laissez faire stayed a serious problem which increased and extended the impact, at least in Britain. Hmm, interesting; I should look into the economic history of Britain further (though I don't know of many in-depth sources off the top of my head, unfortunately). Out of curiosity, what do you think of discussion that has taken place in the AH.com version of this thread? Since it's in the 'After 1900' section, I think you can access it even without membership.
Interesting. Possibly my information was wrong on the importance of the SH Tariffs in prolonging the depression. Although political interpretations have changed since the late 70's so how much that is a factor I don't know and which if either viewpoint is the more accurate. As I've said elsewhere, while every economic system has weaknesses, especially when applied more in name than actuality, I think Keynesian economics is significantly more valid than a lot of the Neo-classic ideas pushed since the late 70's in much of the Anglo-sphere. That could be partly personal preference as the latter is very much the economic of despair and denying ordinary people any say, making them tools of the market rather than players.
It definitely didn't cause the great depression as that started earlier with the Wall Street crash and the over-dependence on US loans as a result of WWI debts and their own already high tariffs, which made it difficult for rival industrial powers to pay off debts by exporting to them. However as some posters have mentioned another very large hike didn't help anyone.
If I recall correctly after Roosevelt came into power in Nov 32 [or more accurately Jan 33] he was asked to reduce the US tariffs to help revive international trade but declined because he didn't think he had the support for it. However that's a memory of something I read ~40 years back so how accurate I don't know.
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