Economic problems during the great depression were compounded in 1930 when the u.S. Congress passed the _____, aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign products.
Answers
Smoot-Hawley Tariff Act was an act passed by the U.S Congress in 1930, which aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign products. The act implemented protectionist trade policies by increasing the already high tariffs on foreign products. It increased the revenue of US as well as promoted domestic industries and employment as well.
Smoot–Hawley act: Signed on June 17, 1930 to implement trade policies.
These policies were sponsored by Willis C. Hawley.
A tariff is a tax on imports.
There was a significant rise in tariff rates on farm products imported into the country.
Reason: In order to avoid the increase in the unemployment rate and to treat the economic problems Smoot–Hawley act was signed