Page "Gold standard" Paragraph 41

Other factors in the prolongation of the Great Depression include trade wars and the reduction in international trade caused by trade barriers such as Smoot-Hawley Tarriff in the US and the Imperial Preference policies of Great Britain, the failure of central banks to act responsibly, government policies designed to prevent wages from falling, such as the Davis-Bacon Act of 1931, during the deflationary period resulting in production costs dropping slower then sales prices and thereby injuring business profitability and increases in taxes to reduce budget deficits and to support new programs such as Social Security.

The US top marginal income tax rate went from 25 % to 63 % in 1932 and to 79 % in 1936 while the bottom rate increased over 10 fold from. 375 % in 1929 to 4 % in 1932 Successful attacks on partially backed currencies which forced many countries off the gold standard and reduced confidence in the financial system, and a financial system, further damaged by the bank panics of the 1930s were also factors, as was inclement weather such as the drought resulting in the US Dust Bowl.