My understanding is that it was more the 9000 bank failures effectively created a credit crunch. Like if a bank closes and there's no replacement, then most small business were unable to get loans. Farmers who couldn't afford to plant new crops, factories can't improve equipment, inventory get's squeezed across the supply chain, ect. Exports were about 5% of GDP, suggesting that maybe tarrifs may have been the trigger but weren't the primary cause of the depression.
The problem was tightening the money supply, this is common knowledge. It is why the central bankers always flood the system with liquidity when things go south now.
I would honestly pay a monthly fee for a board like this that is completely devoid of political nonsense. It is just so boring to read in every subject.
Then after that, they passed Hawley Smoot Tariff Act to make up for the budget short fall. That caused an already bad situation to get much, much worse.
Didn't Trump campaign on a 60-100% tariff on importers buying from China?
Given importers have been paying tariffs averaging close to 20% since Trump raised them back during his first term, that would imply that they'll be close to 40% in a week when they get raised again.
