The Great Depression was the most catastrophic economic disaster in American history. This affected the entire United States from sea to beautiful, shining sea. Old and young, rich and poor, black and white, everyone suffered the consequences of the excessively extravagant Roaring Twenties. Businesses closed, everyone was neck-deep in debt, banks failed, and the Midwest was quickly a dust bowl from over-farming and salvaged equipment. With the Smoot-Hawley Tariff in place, deflation, everything imaginable bought on credit, and unreliable loans, all that added up eventually led to the collapse of the stock market and the Great Depression. The Great Depression was caused by one main thing, Smoot-Hawley. Price. Enacted in June 1930, this tariff inflated the price of imported goods by as much as fifty percent. This was done by President Hoover to “increase protection for [American] farmers from agricultural imports” (Investopedia.com). A large number of economists signed a petition to stop his reckless actions because they anticipated the reaction of other countries and the fact that "[they] cannot increase employment by restricting trade" ("[they] cannot increase employment by restricting trade" ("[they] cannot increase employment by restricting trade"). The Baltimore Sun”, article in the Thomas Sowell newspaper). The Smoot-Hawley Tariff Act passed anyway, and as the petitioners predicted, foreign countries raised their own tariffs on U.S. goods, causing businesses to close and goods prices to rise. Unlike inflation, gross domestic product and consumer confidence have deflated due to the disappearance of businesses [farms – the dust bowl] and unemployment. In response to this horrific event, President Roosevelt passed the Reciprocal Trade Agreements Act in 1934, encouraging global trade and supporting the General Agreement on Tariffs and Trade (GATT...... middle of paper ....... When nothing could grow because a gust of wind would send a cloud of dust half a mile or more into the air, farmers could not repay their debts or loans to banks, which would cause banks to fail and businesses to close and thus the downward spiral began toward the Great Depression (“Half Broke Horses” by Jeannette Walls The Great Depression was the most catastrophic economic disaster in American history and was). completely preventable Although it may have caused many horrible events, the depression was a valuable lesson for America and all of America. Today we know to avoid tariffs. excessively high rates, extreme deflation, excessive “credit purchases” and countless loans. But we still haven't gotten out of our greedy and dense mind. Economic surveyUSlegal.comHalf-broken horses by Jeannette Walls