Download What were the policies of the Republican presidents?

USA 1910–1929: Boom and bust
GCSE > History (WJEC) > USA 1910-1929 > The rise and fall of the American economy
What were the policies of the
Republican presidents?
Warren G Harding
Calvin Coolidge
Herbert Hoover
1921–1923
Warren G Harding reduced
taxes for US companies and
introduced the Fordney–
McCumber Tariff Act in 1922
– a tax on imports.
1923–1929
Calvin Coolidge said
’Business is America’s
business’. Known as Silent
Cal, his laissez–faire policies
meant he left decisions to
individuals, not government.
1929–1932
The Wall Street Crash meant
that Herbert Hoover broke
his promise of ‘A chicken in
every cooking pot, and a car
in every garage’.
Overview
Overview
• The Republican presidents had a protectionist
approach to foreign trade, but pursued a
laissez–faire policy at home. This gave lots
of freedom to businesses to contribute to
the boom of the twenties, and encouraged
American consumers to support American
business.
• Republican presidents believed that
‘the market’ and private businesses made the
economy work, and government intervention
would only hold companies back. They kept
business taxes low and pursued their laissez–
faire policy, in other words they didn’t interfere
with private businesses.
• The Fordney–McCumber Tariff Act imposed
taxes on imports. This made foreign goods
more expensive and encouraged Americans
to buy American goods. But foreign countries
retaliated and put their own taxes on goods
America wanted to export.
• The Republican presidents did rely on private
investment to drive the economy forward. This
meant that when private wealth evaporated
after the crash, the economy ground to a halt.
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