Republican Government Policies 1920s Flashcards
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- From 1921-1933 American Politics…
- The Republican Party believed in…
From 1921-1933 American politics were dominated by the Republican Party. The Republican Party believed in low tax, Laissez Faire economic policies.
Knowledge (1)
-Because of their “laissez-faire” attitude…
Because of their “laissez-faire” attitude trade union membership fell from 5.1 million in 1921 to 3.6 million in 1929.
Knowledge (2)
-Republicans had a strong belief of…
Republicans had a strong belief of low taxation, the Revenue Act of 1925 reduced some taxes and abolished others.
Knowledge (3)
-Throughout the years the government was consistent in…
Throughout the years the government was consistent in their demands for war loans to European Allies and by a policy of low interest rates they enabled foreign governments to cheaply borrow money in New York.
Analysis (1) & historiography
- This was important because these policies and…
- Peter Clements believes “a dynamism… that encouraged risk and adventure”
This was important because these policies and the lack of government regulation, caused what Peter Clement believes “a dynamism… that encouraged risk and adventure”.
Analysis (2)
- Low taxes and low interest rates…
- The Fordney-McCumber Tariff Act…
Low taxes and low interest rates meant it was easy to borrow loans. The Fordney-McCumber Tariff Act of 1922 put high tariffs on foreign goods, encouraging American trading, but it also caused other nations to put high tariffs on American goods.
Analysis + (1)
-However, the government couldn’t…
However, the government couldn’t cut taxes or interest rates because they were practically non-existent.
Analysis + (2)
-They couldn’t tighten up…
They couldn’t tighten up regulation and hoped the stock market would fix itself.
Evaluation (1)
- In evaluation, this was…
- Ethical Morals…
In evaluation, this was an important factor for the cause of the great depression as the lack of regulation meant not all businesses followed ethical morals- for example, child labour was prominent in the South.
Evaluation (2)
-These policies of the government created…
The policies of the government created a culture of greed and recklessness with other people’s money.
Evaluation (3)
-The Smoot-Hawley Tariff Act pf 1930…
The Smoot-Hawley Tariff Act of 1930 increased tariffs, rather than lowering them, is another example of a Republican policy that proved to be ineffective.
Evaluation (4)
-However, the polices….
However, the policies of the Republican government were not as important as the weakness of the US banking system.
Evaluation (5)
- The banks’ system of giving out loans…
- But when more and more people…
The banks’ system of giving out loans with no questions asked, only worked when people had jobs, reasonably high wages and were therefore able to repay loans. But when more and more people were asking for loans to invest in the stock market, banks couldn’t cope.
