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This all seems like the runup to the great depression :/

by stuaxo 8y ago

danieltillett 8y ago
In fairness trade protection was an exacibation, not a cause of the Great Depression [1]. 1. https://en.m.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act https://en.m.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act
- xymor 8y ago
  So, you're saying the 1930 introduced tarrifs didn't create the 1929 depression? I hope you can provide a source for such a bold statement.
  - danmaz74 8y ago
    1929 was the year of the market crash. The depression lasted 12 years, most of them during the 1930s.
- dustinmoorenet 8y ago
  Yeah, the main reason was rampant stock speculation. I'm glad we don't have that anymore. /s
- deleted 8y ago
  [deleted]
pmontra 8y ago
The tariffs introduced in 1930 could have been a big factor in making that depression Great. http://americastradepolicy.com/did-the-smoot-hawley-tariff-cause-the-great-depression/ http://americastradepolicy.com/did-the-smoot-hawley-tariff-c... > The economists argued that the tariff increases would raise the cost of living, limit our exports as other countries retaliated, injure U.S. investors since the high tariffs would make it harder for foreign debtors to repay their loans, and damage our foreign relations. Unfortunately, this is what happened. > From 1929 to 1933 American exports declined from about $5.2 billion to $1.7 billion, and the impact was concentrated on agricultural products such as wheat, cotton and tobacco. As a result, many American farmers defaulted on their loans, which in turn particularly affected small rural banks.
- UncleEntity 8y ago
  Make Recessions Great Again? Though I would argue that Smoot-Hawley was a mere symptom of a new-found desire of national governments to meddle in the economy in such a way that it couldn't recover from the inflationary crash brought on by the Roaring '20s. Wage controls, price controls, production quotas, tariffs, &etc...
guiomie 8y ago
This comment sparked some comments citing the source of the great depression, we've got: stock speculation and tarifs. Its interesting because I always thought the cause was central banks wanting to peg the dollar to gold, this is what I had gathered from reading Lord of Finances year ago. Perhaps I need to reread it?

This all seems like the runup to the great depression :/

by stuaxo 8y ago

This all seems like the runup to the great depression :/

In fairness trade protection was an exacibation, not a cause of the Great Depression [1]. 1. https://en.m.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act https://en.m.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act

xymor 8y ago
So, you're saying the 1930 introduced tarrifs didn't create the 1929 depression? I hope you can provide a source for such a bold statement.
- danmaz74 8y ago
  1929 was the year of the market crash. The depression lasted 12 years, most of them during the 1930s.
dustinmoorenet 8y ago
Yeah, the main reason was rampant stock speculation. I'm glad we don't have that anymore. /s
deleted 8y ago
[deleted]

pmontra 8y ago

The tariffs introduced in 1930 could have been a big factor in making that depression Great. http://americastradepolicy.com/did-the-smoot-hawley-tariff-cause-the-great-depression/ http://americastradepolicy.com/did-the-smoot-hawley-tariff-c... > The economists argued that the tariff increases would raise the cost of living, limit our exports as other countries retaliated, injure U.S. investors since the high tariffs would make it harder for foreign debtors to repay their loans, and damage our foreign relations. Unfortunately, this is what happened. > From 1929 to 1933 American exports declined from about $5.2 billion to $1.7 billion, and the impact was concentrated on agricultural products such as wheat, cotton and tobacco. As a result, many American farmers defaulted on their loans, which in turn particularly affected small rural banks.

UncleEntity 8y ago
Make Recessions Great Again? Though I would argue that Smoot-Hawley was a mere symptom of a new-found desire of national governments to meddle in the economy in such a way that it couldn't recover from the inflationary crash brought on by the Roaring '20s. Wage controls, price controls, production quotas, tariffs, &etc...

guiomie 8y ago

This comment sparked some comments citing the source of the great depression, we've got: stock speculation and tarifs. Its interesting because I always thought the cause was central banks wanting to peg the dollar to gold, this is what I had gathered from reading Lord of Finances year ago. Perhaps I need to reread it?