[zippy5]

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.

https://www.sjsu.edu/faculty/watkins/depression.htm

[onlyrealcuzzo]

Banking crises are largely accounting problems and can - mostly - be fixed from accounting.

There will be winners and losers, and many people won't like the result, but it's not going to end in a Great Depression.

Tariffs - on the other hand - can break your actual, real, non-financial economy - which cannot be fixed by accounting.

[borgdefenser]

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.

[agent281]

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.