The Role High Protective Tariffs Played in the Great Depression Essay (Essay Sample)

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The Role High Protective Tariffs Played in the Great Depression
Historical Background
The United States’ Congress, in 1922, passed the Fordney – McCumber Tariff Act, which increased the U.S. tariffs on imports. In 1927, the League of Nations’ met in Geneva for a World Economic Forum. They had concluded in the meeting that the nations would put an end to protective tariffs for mutual trading, but many of the delegate nations failed to conform to the agreement, for instance, the French passed new tariff laws and quota system in 1928. During the 1920s, the United States had made enormous amounts of profits in productivity following electrification that was a crucial factor in mass production. Sophisticated machines such as trucks and tractors replaced the traditional ways of production that were inferior such as the use of mules and horses, production grew and there was under-consumption and overproduction. Senator Smoot contended and suggested that raising the tariffs would mitigate the overconsumption problem. Even the production of agricultural products increased. Even though the manufactured imports were rising, the United States exports were rising faster. Senator Smoot championed another increase of trade tariffs in 1929 during the beginning stages of the Great Depression with an aim of protecting the American farmers and jobs. The second tariff increase bill became the highly controversial Smoot-Hawley Tariff Bill.