Knowledge Tree
Great Depression
Facts (16)
Sources
History of tariffs in the United States - Wikipedia en.wikipedia.org 8 facts
claimThe United States Congress passed the Smoot–Hawley Tariff Act of 1930 to address the Great Depression, but the act worsened the economic situation as Canada, Britain, Germany, France, and other industrial nations retaliated with their own tariffs and bilateral trade deals, causing a decline in American imports and exports.
claimDouglas Irwin argues that the Smoot-Hawley Tariff Act was not the primary cause of the Great Depression, but it contributed to the severity of the economic downturn by provoking international retaliation and reducing global trade.
claimPrice increases during World War I and deflation during the Great Depression caused temporary spikes and dips in the average U.S. tariff level.
claimThe Smoot–Hawley Tariff Act of 1930 increased tariff rates at the beginning of the Great Depression.
measurementDuring the Great Depression (1929–1933), the United States experienced an economic collapse where real GDP declined by about 25% and unemployment exceeded 20%.
measurementThe Tariff Act of 1930, known as the Smoot–Hawley Tariff, raised the average tariff on dutiable imports from approximately 40% to 47%, with price deflation during the Great Depression causing the effective rate to rise to nearly 60% by 1932.
claimDaniel Griswold wrote 'Peddling Protectionism: Smoot-Hawley and the Great Depression', published in the Cato Journal in 2011, which discusses the Smoot-Hawley Tariff and its relationship to the Great Depression.
measurementA counterfactual simulation suggests that almost a quarter of the observed 40% drop in United States imports during the Great Depression can be attributed to the increase in the effective tariff, which includes the Smoot-Hawley Tariff Act and deflation.
U.S. tariff outcomes dependent on trading partner responses dallasfed.org May 13, 2025 3 facts
claimThe United States introduced payroll taxes in 1935 under the Federal Insurance Contributions Act during the Great Depression to fund Social Security, which reduced the federal government's fiscal dependence on tariffs.
claimThe Smoot-Hawley Tariff Act of 1930 was the last major protectionist spike in the United States and likely worsened the Great Depression.
claimHigh tariffs can restrict imports, harm industries dependent on foreign inputs, escalate trade tensions, and provoke retaliatory actions from trading partners, as evidenced by historical episodes such as the Great Depression.
The Tariff Tug-of-War: A Look at Protectionism and Free Trade Over ... wita.org Apr 29, 2025 2 facts
claimThe Smoot-Hawley Tariff Act during the Great Depression demonstrated that protectionist policies can lead to unintended consequences, including reduced international trade and economic strain.
claimThe Smoot-Hawley Tariff Act of 1930 resulted in a dramatic decline in international trade and worsened the economic crisis of the Great Depression.
History of modern nutrition science—implications for current ... bmj.com Jun 13, 2018 1 fact
accountThe first recommended dietary allowances (RDAs) were created by the League of Nations, the British Medical Association, and the US government to establish minimum dietary requirements in preparation for war during the Great Depression and the Second World War.
The price of protectionism: Understanding the economic tradeoffs of ... statestreet.com 1 fact
claimThe Smoot-Hawley Tariff Act of 1930 is widely regarded as a contributor to the Great Depression.
U.S. Trade and Tariffs: A Long-Term Perspective - UW-Stevens Point | blog.uwsp.edu Jan 8, 2025 1 fact
accountThe Smoot-Hawley Tariff Act of 1930 increased tariffs on imports of farm products and manufactured goods in an unsuccessful attempt to pull the United States out of the Great Depression.