Aftermath

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As talks over the bill continued, the United States economy began to slow down. By the fourth quarter, there were signs hich showed that the economy was beginning to ener a recession. Then, in October of 1929, the Stock Market crashed.

Description

Source: Fratantuono, Michael. 'The Hawley Smoot Tariff Act of 1930' Exhibit 27

The effect of the Hawley-Smoot Tariff has been widely discussed. Protectionists Alfred Eckes and Pat Buchanan, argue that the crash happened in 1929, before the actual signing of the Hawley-Smoot Tariff into law, in 1930.

Other economists believe that the Hawley-Smoot Tariff was directly responsible for the crash. Economist Alan Reynolds demonstrated in 'The National Review' in 1979 that actions which favored the defeat of the bill correlate with positive performance in the Stock Market, while actions favoring passage of the tariff bill correlate quite well with declines in the stock market, culminating with the Stock Market Crash of 1929(25).