The book "Wrong" by Richard Grossman is being analyzed. The British Imperial Policy in chapter two and the Smoot-Hawley Tariff in chapter seven, are two economic disasters that will be compared and contrasted. The British Imperial Policy speaks about Britain and their need for money, and why they needed to place high tariffs and make American goods seem unwanted. The Smoot-Hawley Tariff discusses the result of losing colonies, and the American Revolution with trade treaties with other countries, and how the United States was affected.
The British Imperial policy in chapter two is an economic disaster that made Britain place tariffs on goods. During colonial times the American colonies were exploited by the British government. The cause of …show more content…
Losing the North American colonies, and the thirteen colonies to American independence, during the end of the eighteenth century, caused a disruption of the colonial powers' trade patterns. "British exports fell by about one-fifth following the American Revolution".4 Britain's trade with northwestern Europe almost doubled. This caused Britain to seek other trade treaties with different European countries. The industrialization and importance of the export industries, like the cotton textiles, and the "increased pressure in favor of free trade as manufacturers increasingly complained about the protection afforded to agriculturists and the resulting higher food prices their workers paid".5 This led to the rise of the first political-pressure group. The United States would now have to produce tremendous amounts of goods, without help from other countries, which caused a huge problem for them. They were getting in more than they could give out, which forced a huge economic disaster for them. A large majority of economists believed the Smoot-Hawley Tariff Act would cause a problem for the U.S., turning a recession into a worldwide depression. Although, few economists believe the Smoot-Hawley was indeed, a principal cause of the Great Depression. It did contribute to the loss of confidence on …show more content…
The British Imperial policies Navigation Acts limited the American market due to them only wanting their goods transported on American ships. Although, this is also a monetary policy. Expansionary monetary policy increases the money supply in order to stimulate economic growth and boost consumer spending. Due to the tariffs placed on American goods, these items became less attractive, hurting the American Economy. In the Smoot-Hawley Tariff, the international policy came into effect when they lost the North American colonies, and the thirteen colonies to American Independence, and the French Canada to Britain. Due to the United States having to produce and sell for themselves, they were losing money and production. For the monetary policy, manufacturers complained about the protection that was given to the agriculturists and how their workers had to pay higher food
The British Imperial policy in chapter two is an economic disaster that made Britain place tariffs on goods. During colonial times the American colonies were exploited by the British government. The cause of …show more content…
Losing the North American colonies, and the thirteen colonies to American independence, during the end of the eighteenth century, caused a disruption of the colonial powers' trade patterns. "British exports fell by about one-fifth following the American Revolution".4 Britain's trade with northwestern Europe almost doubled. This caused Britain to seek other trade treaties with different European countries. The industrialization and importance of the export industries, like the cotton textiles, and the "increased pressure in favor of free trade as manufacturers increasingly complained about the protection afforded to agriculturists and the resulting higher food prices their workers paid".5 This led to the rise of the first political-pressure group. The United States would now have to produce tremendous amounts of goods, without help from other countries, which caused a huge problem for them. They were getting in more than they could give out, which forced a huge economic disaster for them. A large majority of economists believed the Smoot-Hawley Tariff Act would cause a problem for the U.S., turning a recession into a worldwide depression. Although, few economists believe the Smoot-Hawley was indeed, a principal cause of the Great Depression. It did contribute to the loss of confidence on …show more content…
The British Imperial policies Navigation Acts limited the American market due to them only wanting their goods transported on American ships. Although, this is also a monetary policy. Expansionary monetary policy increases the money supply in order to stimulate economic growth and boost consumer spending. Due to the tariffs placed on American goods, these items became less attractive, hurting the American Economy. In the Smoot-Hawley Tariff, the international policy came into effect when they lost the North American colonies, and the thirteen colonies to American Independence, and the French Canada to Britain. Due to the United States having to produce and sell for themselves, they were losing money and production. For the monetary policy, manufacturers complained about the protection that was given to the agriculturists and how their workers had to pay higher food