Fordney-McCumber Tariff

Definition

The Fordney-McCumber Tariff was a protectionist trade policy enacted in the United States in 1922 that raised import tariffs on a wide range of goods. It was a key economic policy during the Republican Ascendancy of the 1920s.

5 Must Know Facts For Your Next Test

1. The Fordney-McCumber Tariff raised import tariffs by an average of 38.5%, the highest level since the Civil War.
2. The tariff was designed to protect American industries and jobs from foreign competition, especially in the agricultural and manufacturing sectors.
3. It was passed during the Republican Ascendancy, a period of conservative economic policies and Republican political dominance in the 1920s.
4. The tariff was criticized by trading partners and some American businesses who argued it would lead to retaliation and higher consumer prices.
5. The Fordney-McCumber Tariff was a precursor to the even more protectionist Smoot-Hawley Tariff of 1930, which is widely blamed for exacerbating the Great Depression.

Review Questions

• Describe the key provisions and goals of the Fordney-McCumber Tariff.
  • The Fordney-McCumber Tariff was a protectionist trade policy enacted in 1922 that raised import tariffs by an average of 38.5%, the highest level since the Civil War. The primary goal of the tariff was to protect American industries and jobs, especially in the agricultural and manufacturing sectors, from foreign competition. It was a key economic policy during the Republican Ascendancy of the 1920s, a period of conservative economic policies and Republican political dominance.
• Analyze the economic and political factors that led to the passage of the Fordney-McCumber Tariff.
  • The Fordney-McCumber Tariff was passed during the Republican Ascendancy, a period of conservative economic policies and Republican political dominance in the 1920s. The tariff was designed to protect American industries and jobs from foreign competition, reflecting the protectionist economic views of the Republican Party at the time. Politically, the tariff appealed to the party's base of agricultural and industrial interests, who saw it as a way to shield their sectors from foreign competition. Economically, the tariff was intended to boost domestic production and employment, though it was criticized by trading partners and some American businesses who argued it would lead to retaliation and higher consumer prices.
• Evaluate the long-term impact of the Fordney-McCumber Tariff and its relationship to the Smoot-Hawley Tariff and the Great Depression.
  • The Fordney-McCumber Tariff was a precursor to the even more protectionist Smoot-Hawley Tariff of 1930, which is widely blamed for exacerbating the Great Depression. While the Fordney-McCumber Tariff was intended to protect American industries and jobs, it set a precedent for increasing trade barriers that ultimately backfired. The Smoot-Hawley Tariff, which raised tariffs even higher, led to retaliation from trading partners and a collapse in international trade, contributing to the severity of the economic downturn. In this way, the Fordney-McCumber Tariff, though enacted during a period of Republican political dominance, laid the groundwork for policies that would have disastrous consequences for the U.S. and global economies in the years to come.

Related terms

Protectionism:

An economic policy of restricting or regulating trade between nations in order to protect domestic industries and jobs.

Smoot-Hawley Tariff:

A U.S. law enacted in 1930 that raised tariffs on over 20,000 imported goods, which is widely seen as exacerbating the Great Depression.

Republican Ascendancy:

The period of Republican Party dominance in U.S. politics during the 1920s, characterized by conservative economic policies and a return to 'normalcy' after World War I.