Encourage The Economic Boom In The 1920s Essay
Explain why the policies of republican presidents encouraged the economic boom in 1920s
The boom was a huge economic development for the US. The First World War had been very beneficial to America, factory production had risen substantially so it could reach the needs of the war. America then experienced a substantial growth in industry and farming. Businesses also began to mass produce goods through standardization such as automobiles which lead many Americans to purchase the goods which in turn meant more wealth for the companies. This resulted in a bigger and stronger economy. The boom also marked huge technological advancement not only in America, but worldwide. Items such as planes, radios and automobiles were all being manufactured. …show more content…
He believed in and promised a “return to normality” which was the idea of returning to life prior to World War 1 which was a much more prosperous time not only for society, but also for the economy. This idea of “return to normality” also meant that Harding had a pro business stance. He was able to reduce taxes to give businesses more money to grow and also gave more money to ordinary Americans. This had a big impact on encouraging the boom as it meant companies and businesses had more money to spend on further development of new products or goods which caused more people to buy them, this would then lead to an increase of consumer demand which was great for businesses as well as the economy. Harding implemented the laissez faire policy. This policy meant leaving things to take their own course (in this case, the economy). Laissez faire benefited the economy because the government did not interfere with the flow of the economy. Harding also introduced the Fordney-McCumber Tariff in 1922. This placed a tax on all goods from foreign countries, this was known as protectionism. This policy also hugely helped the boom as it encouraged Americans to only purchase American goods which further fueled the already strong economy. Another impact it had was that it made Americans feel more confident since they only bought American goods, they saw them as superior to other european
The boom was a huge economic development for the US. The First World War had been very beneficial to America, factory production had risen substantially so it could reach the needs of the war. America then experienced a substantial growth in industry and farming. Businesses also began to mass produce goods through standardization such as automobiles which lead many Americans to purchase the goods which in turn meant more wealth for the companies. This resulted in a bigger and stronger economy. The boom also marked huge technological advancement not only in America, but worldwide. Items such as planes, radios and automobiles were all being manufactured. …show more content…
He believed in and promised a “return to normality” which was the idea of returning to life prior to World War 1 which was a much more prosperous time not only for society, but also for the economy. This idea of “return to normality” also meant that Harding had a pro business stance. He was able to reduce taxes to give businesses more money to grow and also gave more money to ordinary Americans. This had a big impact on encouraging the boom as it meant companies and businesses had more money to spend on further development of new products or goods which caused more people to buy them, this would then lead to an increase of consumer demand which was great for businesses as well as the economy. Harding implemented the laissez faire policy. This policy meant leaving things to take their own course (in this case, the economy). Laissez faire benefited the economy because the government did not interfere with the flow of the economy. Harding also introduced the Fordney-McCumber Tariff in 1922. This placed a tax on all goods from foreign countries, this was known as protectionism. This policy also hugely helped the boom as it encouraged Americans to only purchase American goods which further fueled the already strong economy. Another impact it had was that it made Americans feel more confident since they only bought American goods, they saw them as superior to other european