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The stock market crash was a rapid and severe drop in stock prices across a broad segment of the market. The crash prompted the erosion in the U.S. banking system, triggering the Great Depression. -
Over 9,000 banks failed, clearing out billions in depositors' savings because there was no deposit insurance. Deflation forced banks, firms, and debtors into bankruptcy. -
The Smoot-Hawley Tariff Act was passed in 1930. It was a U.S. law that raised tariffs on imported agricultural and manufactured goods to protect domestic industries and increase prices for American farmers.