Preview

How far does the role of the Republican Government explain the economic boom of the 1920s?

Good Essays
Open Document
Open Document
1042 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
How far does the role of the Republican Government explain the economic boom of the 1920s?
How far does the role of the Republican Government explain the economic boom of the 1920s? In this essay I will explain the reasoning for why it’s obvious the Republic Government led to the economic booms of the 1920s due to such policies like lowered taxation, tariffs and Laissez Faire to name a few. However there is evidence to argue against this point due to factors like consumerism, World War one and America’s abundant natural resources also leading to the economic boom of the 1920s. In some ways the Republican Government led to the economic boom due to their policy of no interference otherwise known as “Laissez-Faire”. This was a policy in which both the Republican presidents favoured limiting government activity in terms of both taxation and foreign policy as they rejected the league of nations in order to return to isolationism. The fact that the Government chose not to interfere with businesses meant they could they flourish as the market determined how things progressed, an example of this being the fact production increased by 50% from 1913 to 1925. This shows how the “Laissez-Faire” approach led to economic boom as with the government not interfering, businesses were allowed to flourish. While the Republican Government also caused the economic boom by lowering taxes as Andrew Mellon, the Secretary of the Treasury at the time, wanted the maximum rate of income tax to be 25% and achieved the aim in the last cut of 1925. This meant the wealthy gained more money to invest in business and therefore businesses did extremely well while the government’s total income also increased because of the prosperity of the 1920s. This shows that the Republican Government caused the economic boom by lowering taxes as this allowed more money to be invested in business and therefore also led to the government receiving more money because of the prosperity. The introduction of tariffs by the Republican Government is another example of a policy that led to the
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    How Successful Were the National Governments in Bringing Economic Recovery in Britain in the Years 1931-1939?
    • 710 Words
    • 3 Pages

    How Successful Were the National Governments in Bringing Economic Recovery in Britain in the Years 1931-1939?

    The National Governments put in place several significant policies that were successful in bringing about economic recovery in Britain. In 1932 the decision was made to lower the bank rate to 2% which was beneficial to the recovery for various reasons including that the lowered rates resulted in what people referred to as ‘cheap money’, an idea which enveloped the public and resulted in many taking out loans and mortgages. This new wave of prosperity meant people were spending more and increasing demand, which in turn stimulated the economy by creating a demand for staff, which led to lower unemployment. The National Government was responsible for this cycle of prosperity and the consequential growth in consumerism, which aided the recovery significantly.…

    • 710 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Ge273 Project Part 1 Voter Victor
    • 500 Words
    • 2 Pages

    Ge273 Project Part 1 Voter Victor

    Government involvement in the economy increased most significantly during the New Deal of the 1930s. The 1929 stock market crash had initiated the most serious economic dislocation in the nation 's history, the Great Depression (1929-1940). President Franklin D. Roosevelt (1933-1945) launched the New Deal to alleviate the emergency.…

    • 500 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    How Did the Federal Government Actively Promote Industrial and Agricultural Development?
    • 294 Words
    • 1 Page

    How Did the Federal Government Actively Promote Industrial and Agricultural Development?

    territorial and state governments who were in turn eager to sell the land and acquire population.…

    • 294 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Quiz Ch 22 23
    • 1179 Words
    • 5 Pages

    Quiz Ch 22 23

    5. During the 1920s, when $1,800 was considered the minimum annual income for a decent standard of living,…

    • 1179 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    roosevelt
    • 7986 Words
    • 20 Pages

    roosevelt

    THE GREAT DEPRESSION AND THE NEW DEAL, 1929-1939 THE CHAPTER IN PERSPECTIVE By the 1920s, the corporate industrial economy had grown for more than half a century. Along with its strengths, serious weaknesses developed. Few Americans noticed them because of the hot pursuit of material wealth. The consumer culture of the 1920s and a businessoriented government promoted the pursuit not only of money but of debt as well. When mass purchasing power could no longer sustain prosperity, the economy collapsed. The greatest depression in history dawned, bringing massive unemployment, withering prices, and a stagnated economy. Unlike his predecessors, Herbert Hoover took action. No president before him had dared to stimulate the economy for fear of throwing it hopelessly out of balance. But Hoovers policies, for all his good intentions, were too wedded to the old order to make any difference. The New Deal was no revolution in public policy. In many ways it was quite conservative. It sought ultimately to reform capitalism by modifying some of the excesses that led to the Great Depression. If there were a revolutionary aspect, however, it lay in the New Deals willingness to commit government to compensating for swings in the economy and to supporting those in need. The New Deal marshaled the government activism and executive leadership of Progressivism, but with none of the moralizing that often accompanied progressive reform. With the New Deal, the modern liberal state was born. OVERVIEW This chapter opens with federal investigator Lorena Hickok traveling across America in search of the New Deals impact on the lives of ordinary people. The deprivation, anguish, and courage she finds upsets the common stereotype of lazy loafers in search of government handouts. She also discovers that the New Deal is restoring hope and confidence, and because of it Americans are looking to Washington as never before for help. The stock market crash of 1929, one of the worst in the nations…

    • 7986 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Good Essays

    Does Hoover Deserve Blame of Depression?
    • 381 Words
    • 2 Pages

    Does Hoover Deserve Blame of Depression?

    In the genuine economic policy known as laissez-faire, Hoover allowed many economic markets to operate freely without government regulation. Monopolies and trusts were allowed to form, leading to a tremendous inequality between the distribution of wealth from the rich and poor across America. Indeed, some still insist that Hoover did do something about the Depression but it was too little too late. The worst part about the Depression was the Federal Reserve Board, meant to dispose of the let alone policy of Hoover, but in reality, doing absolutely nothing about it. One thing Hoover attempted to do was the Smoot-Hawley Tariff Act. Unfortunately, this was the worst thing he could have done. Raising the tariff was a ridiculous approach for this time, as all attempts to cure society should have been to lower prices. Thus, the Depression was not Hoover’s fault because he did nothing, but rather because he did the wrong things in order to aid the economy at the time.…

    • 381 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Did the New Deal Prolong the Great Depression?
    • 390 Words
    • 2 Pages

    Did the New Deal Prolong the Great Depression?

    * The FDIC insured everyone’s money that is in the bank which is something that the US needed in 1929…

    • 390 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    How Did The 1920s Lead To The Great Depression
    • 925 Words
    • 4 Pages

    How Did The 1920s Lead To The Great Depression

    While the 1920s may have been a time of great extravagance and glory, the years following were not. The 1920s were a very materialistic time, and though it is often seen as a great economic boom for the US, by the end of the decade the middle class was disappearing and 40% of people were impoverished. Many people believe Black Tuesday, the stock market crash of 1929, lead to the great depression, but it was actually many different things throughout the 1920s.…

    • 925 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    To what extent was racial conflict the dominant social tension in the USA in the period from 1919
    • 1831 Words
    • 5 Pages

    To what extent was racial conflict the dominant social tension in the USA in the period from 1919

    The economic boom was the most crucial aspect for America during the 1920s, and with the boom saw the income and wealth distribution become increasingly uneven, which led to higher levels of social fragmentation. Top 5% of the income earners had more than a third of income, more than 65% earned less…

    • 1831 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    How Did The Federal Government Regulate The Economy During The Gilded Age
    • 749 Words
    • 3 Pages

    How Did The Federal Government Regulate The Economy During The Gilded Age

    During the Gilded Age, the federal government’s involvement in the economy hugely impacted the American citizen’s way of life. Reformers, such as President Rutherford Hayes, focused on corporations and how they abused the people by earning money to the expense of the workers. They also strived for better working conditions and wages to prosper in a class society. While it tried various solutions to help the economy, the government should have focused on establishing labor laws, disproving Social Darwinism, and creating more useful tariffs.…

    • 749 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Flapper
    • 720 Words
    • 3 Pages

    Flapper

    The presidential administration of F.D.R. differed dramatically from those of the 1920s (Harding, Coolidge, and Hoover) about the role of the federal government in the economy and in the lives of ordinary Americans. How and why did this occur?…

    • 720 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Who Is Responsible For The Great Depression
    • 981 Words
    • 4 Pages

    Who Is Responsible For The Great Depression

    Hoover signed the Smoot-Hawley tariff into law in June 1930 whichraised taxes on over 20,000 imported goods to record levels. He raised the top income tax rate from 25 percent to 63 percent and the lowest income tax rate from 1.1 percent to 4 percent in 1932. Despite what most of us have been taught, there was nothing laissez-faire about Hoover. In the 1932 election, Franklin Delano Roosevelt (FDR) criticized his opponent Hoover of presiding over “the greatest spending administration in peacetime in all of history.”…

    • 981 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    How successful were Presidents, Roosevelt, Taft and Wilson in addressing America’s economic problems?
    • 1914 Words
    • 8 Pages

    How successful were Presidents, Roosevelt, Taft and Wilson in addressing America’s economic problems?

    America in the late 19th and early 20th century was going through tremendous growth, with mass immigration and the consequent rapid growth of cities and urbanisation, industrialisation and mass production. Teddy Roosevelt, Taft and Wilson, the 3 main presidents of the early 20th century are often known for their many achievements both abroad and at home, and economic problems are one of the many problems that they dealt with during their terms as president. This essay will touch on the economic problems in that era and how the presidents dealt with those problems.…

    • 1914 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    The government did little to improve the lives of the people throughout the 1930s
    • 1265 Words
    • 4 Pages

    The government did little to improve the lives of the people throughout the 1930s

    The government did little to improve the lives of the people throughout the 1930s. Discuss (40)…

    • 1265 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    The Great Depression
    • 309 Words
    • 2 Pages

    The Great Depression

    When the Great Depression hit the United States, the two presidents that were in office, Herbert Hoover and Franklin D. Roosevelt had very different approaches on how to fix it. To be liberal means to agree on limits on people’s behavior by granting government certain limited powers, but only if the government acts for the common good of people and protects their private rights. On the contrary, conservatives are doubtful of change. Conservatives respect authority, customs and traditions. The current definition of liberal changed in 1964-65, when President Johnson created Medicare, Medicaid, Food Stamps, and Welfare during his ‘War on Poverty,’ causing liberal Democrats to believe in big government. Also in 1964, the Republican’s nomination of Barr Goldwater started the process in which conservatives believed in small government and free markets. Hoover said that, “… [The Republican administration] declared that these businesses must be conducted with glass pockets…” (Doc A). All that is needed is government regulation of corrupt businesses. On the other hand, Roosevelt said, “If starvation and dire need on the part of any of our citizens make necessary the appropriation of additional funds…I shall not hesitate to tell the American people the full truth and ask them to authorize the expenditure of that additional amount…” (Doc E). If government regulation is reduced, and money is spent on things that will feed and employ people, then the Depression will be fixed. President D. Roosevelt’s excessive use of government spending illustrates how he is liberal. Contrarily, Hoover’s limited use of government resources demonstrates his conservative beliefs.…

    • 309 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics