THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trade between U.S. and other nations was reduced.
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Labor unions demanded higher wages
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Foreign countries were able to sell more products in the U.S.
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Trade between foreign countries and the U.S. increased due to the tariffs.
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Detailed explanation-1: -Tariffs were also used for protectionist purposes, benefiting largely northern manufacturing businesses and effectively raising the costs to southern agricultural exporting industries. Tariffs also spawned corruption and political favoritism for some industries over others.
Detailed explanation-2: -The punitive tariffs raised duties to the point that countries could not sell goods in the United States. This prompted retaliatory tariffs, making imports costly for everyone and leading to bank failures in those countries that enacted such tariffs.
Detailed explanation-3: -The stock market crash, people buying on credit, banks didn’t have enough money, and high tariffs were all causes of the Great Depression. How did high tariffs affect the economy? They hurt the economy by limiting American producers’ ability to sell goods overseas.