From 1921 and throughout the 1920's, the Republican party were in power. This period of time was known as the 'roaring twenties' due to the huge economic growth that America was facing, it was by not interfering that the Republican Party achieved this level of success. They believed in a laissez-faire style of government and rugged individualism which meant that they didn't interfere and thought everyone could succeed in life without their intervention. Many believe that this lack of interference was the main cause of the great depression, also known as the Wall Street Crash.
As a party that favoured this style of government they favoured low taxes on the rich and minimal regulation. This was ideal for the rich businessmen; they were left to make their fortunes without any interference. The increase in successful businesses at this time led to an increase of people investing in the stock market. The majority of investors were already rich and powerful people. With the introduction of buying on margin ( Buying with credit ) however allowed many more ordinary people to take part. This created an economic boom and is one of the main reasons for the decade being known as the roaring twenties. Thousands of people were trying to get rich quick and many were succeeding leading to a huge increase in wealth, this increase in wealth combined with the 'Fordney-McCumber Tariff' ( Passed by former Republican President, Warren Harding in 1922 ) which placed a high tax on imported goods, led to more goods being bought within America and increasing economic nationalism. This was very helpful for American businesses but made trading to and from other countries harder and is arguably another cause or contributor of the great depression, too much of America's growth was coming from the stock market. Unfortunately the boom in the purchase of consumer goods such as radios and cars amongst other things was not sustainable. Such luxury goods were bought once and repeat purchases did... [continues]
As a party that favoured this style of government they favoured low taxes on the rich and minimal regulation. This was ideal for the rich businessmen; they were left to make their fortunes without any interference. The increase in successful businesses at this time led to an increase of people investing in the stock market. The majority of investors were already rich and powerful people. With the introduction of buying on margin ( Buying with credit ) however allowed many more ordinary people to take part. This created an economic boom and is one of the main reasons for the decade being known as the roaring twenties. Thousands of people were trying to get rich quick and many were succeeding leading to a huge increase in wealth, this increase in wealth combined with the 'Fordney-McCumber Tariff' ( Passed by former Republican President, Warren Harding in 1922 ) which placed a high tax on imported goods, led to more goods being bought within America and increasing economic nationalism. This was very helpful for American businesses but made trading to and from other countries harder and is arguably another cause or contributor of the great depression, too much of America's growth was coming from the stock market. Unfortunately the boom in the purchase of consumer goods such as radios and cars amongst other things was not sustainable. Such luxury goods were bought once and repeat purchases did... [continues]
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(2011, 03). How Far Were the Economic Policies of the Republican Government Mainly Responsible for the Collapse of 1929-33?. StudyMode.com. Retrieved 03, 2011, from http://www.studymode.com/essays/How-Far-Were-The-Economic-Policies-633782.html
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"How Far Were the Economic Policies of the Republican Government Mainly Responsible for the Collapse of 1929-33?." StudyMode.com. 03, 2011. Accessed 03, 2011. http://www.studymode.com/essays/How-Far-Were-The-Economic-Policies-633782.html.
