Plain English with Derek Thompson

Plain History: The Smoot-Hawley Tariff and the Great Depression

158 snips
Apr 11, 2025
Douglas Irwin, an esteemed economist and historian from Dartmouth, delves into the infamous Smoot-Hawley Tariff and its catastrophic role in deepening the Great Depression. He discusses how this 1930 legislation, intended to protect American farmers, backfired spectacularly, illustrating the pitfalls of misguided protectionism. Irwin reflects on Herbert Hoover’s struggle between party loyalty and economic reality, the tariff's international repercussions, and the complex legacy it left that still resonates in today's economic debates.
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INSIGHT

1920s Economy

  • The 1920s witnessed growth and anxiety, with agriculture declining.
  • This decline set the stage for the Smoot-Hawley Tariff Act.
ANECDOTE

Hoover's Farm Relief

  • Herbert Hoover, known for competence, oversaw food distribution in WWI.
  • He campaigned on farm relief, promising tariffs to aid struggling farmers.
INSIGHT

Farming Costs

  • Tariffs on manufactured goods helped industry but raised farming costs.
  • This tariff, along with European market shifts, squeezed farmers' profits.
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