Tariff That DESTROYED the American Economy in Just Weeks

About this Video

• Video Title: Tariff That DESTROYED the American Economy in Just Weeks
• Channel: The Infographics Show
• Speakers: The narrator's name is not explicitly mentioned in the transcript.
• Duration: 21:01

Introduction

This video explores the role of tariffs, specifically the Smoot-Hawley Tariff Act of 1930, in the Great Depression. It examines whether tariffs were the primary cause of the economic crisis or exacerbated an existing downturn, analyzing the economic and political consequences of protectionist policies.

Key Takeaways

• The Forgotten Depression (1920-1921): A significant economic downturn preceded the Great Depression, highlighting the cyclical nature of economic hardship. This earlier depression was partially attributed to government actions like slashing spending and raising interest rates.
• The Smoot-Hawley Tariff Act (1930): This act dramatically increased tariffs on imported goods, aiming to protect American industries but leading to retaliatory tariffs from other countries. The act is widely considered a catastrophic mistake in US economic policy.
• The Impact of Retaliatory Tariffs: The Smoot-Hawley Act triggered a global trade war, significantly reducing international trade and deepening the Great Depression. Many countries retaliated with their own tariffs, harming US exports.
• Debate on Causality: The video presents differing viewpoints on the extent to which tariffs caused the Great Depression. Some argue that the Smoot-Hawley Act was the primary catalyst, while others maintain that it worsened an already existing crisis.
• The Reciprocal Trade Agreements Act (1934): President Roosevelt's response to the Smoot-Hawley Act involved a reversal of protectionist policies, leading to increased international trade and cooperation.
• World War II's Unintended Economic Benefit: The video suggests that World War II, though devastating, inadvertently helped end the Great Depression through increased government spending and wartime production.