Domestic Politics

This chapter focuses on the long and politically divisive passage of the Smoot–Hawley tariff through Congress. The popular perception is that Congress enacted a higher tariff because it caved in to the demands of special interest groups. In fact, the tariff did not originate in response to demands by politically powerful industries facing competition from imports, but was offered up by Republican politicians who wanted to appease farmers during the presidential election campaign in 1928. The tariff was initiated near a business cycle peak when business was good, not in the midst of the Depression, and it was poorly suited to help farmers, many of whom depended on exports to foreign markets. Of course, the manner in which Congress handled the tariff gave rise to its association with special interest lobbying and logrolling (vote trading among members of Congress), a perception that is wholly accurate.