Reasons for Prosperity Flashcards
Who were the three Republican Presidents of 1920s?
Warren Harding (1921-23), Calvin Coolidge (1923-29), Herbert Hoover (1929-33)
What was the basic government policy?
Laissez-faire, meaning the government intervened as little as possible in the economy, allowing the free market to operate with minimal restrictions.
What Government Policies helped?
High tariffs (Fordney-McCumber Act of 1922 raised tariffs on imported goods to cover the difference between domestic and foreign production costs). Tax Reductions (Government reduced federal taxes significantly in 1924, 1926 and 1928, mainly benefited the wealthy). Fewer Regulations
What Technological Advances helped?
Mass Production, The Motor Vehicle Industry, Road Building, Electrical Devices
What New Business Methods helped?
Growth of Huge Corporations (By 1929 the largest 200 corporations possessed 20% of the nation’s wealth and 40% of the wealth generated by business activities). Management Science, Advertising and Salesmanship
What limits were there to prosperity?
Problems for farmers (Prohibition, Overproduction, Agricultural Business), Women (Tended to remain in comparatively low-paid and often menial jobs; 700,000 women were domestic servants, number of women receiving a college degree actually fell by 5%), Black Americans (Made up 10% of the population but 85% still lived in the south the poorest area).
