The Hawley-Smoot Tariff Around The Depression

A tariff is simply a tax or duty put on goods and products leaving or entering a country. In relation to John. A Macdonald it was part of the National Policy. The tax was put in place to help the canadian Economy and generate revenue. Before the National Policy, Alexander Mackenzie put a small tariff in place that was for revenue. The tariff was only about 20 % duty. When John A. Macdonald was in his second run as prime minister,he reinstated the tariff in the national policy only a higher percentage. The reason the tariff was put in place was to protect Canadian manufacturers and protect against the American competition.

7.Ford-McCumber Tariff- Regulations that raised the tax on imports to its highest ever. Almost 60 percent, designed to pro American businesses especially chemical and metal industries.

In chapter 21, the Great Depression greatly affected the migrant families and local farmers. Mold of cruelty is a metaphor describing the harsh living condition that the migrant workers received from the landowners. In California, the local landowners didn’t want the migrants to take over “their land” so they armed themselves in order to prevent any uprising and threatening actions that will threaten their superiority. They felt they had a right to treat the migrants bad because they were the first to claimed the land. This treatment could be linked to WWII as the Nazi discriminated the Jews in Germany and in the United States, some people are still discriminating that immigrants the moved to the United States. Although, the men that were armed

So, as I stated before, I’ll focus on two reasons - big reasons: In this paragraph, I’ll be talking about how the Tariff was harmful to the people living on the south. First of all, it increased the cost of living in the south and it reduced the profits of the North. This had good

A trade quota is a restriction used in international trade to limit the amount or value of imported or exported goods during a specific period of time. It is a type of protectionism imposed by the government in order to regulate the volume of trade between countries. A current product with a trade quota that applies to Canadian imports is beef and veal. The imports from Non – Free Trade Agreement countries (Australia, Japan, New Zealand, and Uruguay) must have an import permit for beef and veal shipments to enter Canada, and the quantity allowed in is 76,409,000 kilograms. Exports of peanut butter from Canada execute a Trade Rate Quota subjected under Canada’s Export and Import Permits Act. Only the United States hold restrictions on Canada’s

A tariff is a tax on foreign goods. The price of foreign goods increases with the tax, and provides revenue for the government, which makes American products more appealing. This is because the foreign goods that were cheaper are now more expensive. However, why was there a need for tariffs in the early 19th century (1800)? The reason is because, American industries were young, Britain flooded the US market with cheap goods after the War of 1812, and foreign goods have been often cheaper. In order to make sure American businesses could prosper, there had to be tariffs on the foreign goods. The tariff of 1816 was the first substantial protective tariff of the American System; supported by Henry Clay, but opposed by John C. Calhoun and Southern cotton growers. The tariff of 1824 increased the rate of the protective tariff and opposition in the South grew. In the Tariff of 1828 (Tariff of Abominations), there were higher protective tariffs to New England Mills; and Southerners were outraged including Calhoun.

The Great Depression was the longest and deepest depression in American history. It started in 1929 and ended in 1939 (Szostak). The reasoning for this would be: Stock market crash, bank failures, reduction in purchasing across the board, American economic policy with Europe, and lastly drought conditions. All were Jurassic conditions that led America into this horrid depression (Kelly). The government however came up with certain acts and programs to help get us out of this depression. The government programs that helped Americans during the Great Depression were Roosevelt’s New Deal, Federal Loan Act, and the Agricultural Marketing Act.

The United States economy has never been as great nor as equal as it was during the late 1940s-1970s, a period commonly known as the Great Compression. It is extremely ironic that the United States economy boomed and strived after only a few years succeeding the Great Depression. One may ask what stirred this dramatic change from a damaged economy to one that was striving and strong in so little time. To answer this question, one must look closely at the history of the United States economy. To be more specific, one must take a close look at how damaged the economy was during the Great Depression and how much the New Deal and other political and social factors impacted society to ultimately create the Great Compression.

You think your life is hard and miserable now, think back during The Great Depression.

In 1816 United States, tariffs were imposed. The tariffs were meant to gives money to the federal government to loan to industrialists to start making good by themselves instead of depending on Britain. This ended up backfiring because the manufacturing costs of U.S. products cost more than British goods’ prices including the tariff cost. And at the time Britain wouldn’t trade with America, so the new products would end up ruining the U.S. economy similar to what is happening right now, our U.S. prices are more expensive than chinese goods but because of China’s new tariffs, Chinese goods might be more expensive than the already expensive U.S. goods. As the tariffs issue still rages on nowadays since President Donald J. Trump imposed new tariffs, more problems arose from this from 1816, problems including the economy worsening include the new risk of a trade war and an increase in unemployment or increase in the unemployment rate.

“Tariff” comes originally from the Arabic word ta’rifah meaning “to make known.” In a more contemporary setting ‘tariff’ is defined as “the schedule or system of duties so imposed.”("Dictionary.com," 2015, p. 1) This is often taken to be defined as a “tax that a national government places on an imported or exported good or service to encourage or discourage trade.”(Fontinelle, 2012, p. 1)

The Great Depression, often acknowledged with the Stock Market Crash of 1929, but something that is so much more than that, was a decade of economic turmoil. The Great Depression lasted from 1929-1939 consuming a long grueling decade, and as defined by The History Channel, it “was the deepest and longest lasting economic downturn in the history of the western industrialized world” kicked into fast forward by the Stock Market Crash in the fall of 1929. During the fall of 1929, Wall Street was forced into a panic, causing unforeseeable effects to the United States stock market. Following in the crash, consumer spending and investments declined, resulting in a dramatic decline of the output of industries, which came hand in hand with the spike in unemployment as these industries continued downward employees began suffering the consequences and being laid off. Preceding the stock market crash, according to Hyperhistory.com, during the time period of May of 1928 and September 1929, the “average price of stocks will rise 40 percent. The boom is largely artificial.” This is important because America had entered a recession, similar to what the United States recently went through between 2007-2009, during the summer of 1929. The price of stocks rising 40 percent causing the prices to reach a price level that according to The History Channel, “could not be justified by anticipated future earnings”. People were spending far out of their means.

The quote, “Economists still agree that Smoot-Hawley and the ensuing tariff wars were highly counterproductive and contributed to the depth and length of the global Depression” (http://www.federalreserve.gov/newsevents/speech/bernanke20130325a.htm) shows that the Americans original plan of protecting their own businesses only hindered them.

* The assignment of a quota (as of members of a legislature) to a particular segment of the population as a special favor or concession in a proportion above that allowable on a strictly numerical basis.

An instrument in which governments use as a method to intervene in international trade and investment as mentioned earlier are tariffs. A tariff is a form of tax established on foreign goods and services, which are imported. Tariffs are generally used to restrict international trade, as they increase the price of imported goods and services which as a result, makes those commodities more expensive to consumers. Also, a tariff can be exactly like a quota, which will be discussed later, if, permitting the same import volume, the domestic output and prices are identical under the alternative trade policies (Fung, 1989). By restricting trade of imported foreign goods and services through tariffs but increasing the costs, it provides protection to domestic producers against the foreign competitors. As seen from the experience from the Irish case study of a comparison between the industrial sectors of Northern Ireland and the Republic of Ireland to examine the effects of protection on industries specialization and trade, tariffs can play a major part in an industry’s and its surrounding industries’ performance (McAleese, 1977).