INTER WAR YEARS 1919 TO 1939
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The U.S. Congress took steps towards impeaching Herbert Hoover.
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The success of the tariff helped Franklin Roosevelt win the presidential election of 1932.
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Canada, which was America’s largest trading partner, drastically decreased the importation of American products.
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The U.S. economy gained stability and Hoover’s administration took an important step towards ending the Great Depression.
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Detailed explanation-1: -The Smoot-Hawley Act increased tariffs on foreign imports to the U.S. by about 20%. At least 25 countries responded by increasing their own tariffs on American goods. Global trade plummeted, contributing to the ill effects of the Great Depression.
Detailed explanation-2: -The Act and tariffs imposed by America’s trading partners in retaliation were major factors of the reduction of American exports and imports by 67% during the Depression. Economists and economic historians have a consensus view that the passage of the Smoot–Hawley Tariff worsened the effects of the Great Depression.
Detailed explanation-3: -The Smoot-Hawley Tariff Act goal was to increase U.S. farmer protection against agricultural imports. Once other sectors caught wind of these changes, a large outcry to incrase tariffs in all sectors of the economy followed. The increase in this tariff added economic strain to countries during the Great Depression.