republican policies Flashcards
How are republican policies the main reason for economic growth?
These policies and beliefs helped create a business positive environment which the economy could grow under. From 1920-1930 all US presidents were republican, namely, Warren Harding, Calvin Coolidge and Herbert Hoover. The all had similar beliefs and created the Republican policies.
What was the first policy?
Republicans believed that the government should intervene as little as possible in the everyday lives of the people. This was called Laissez-faire. Their view is that the presidents job was to leave the business man alone, to do his job. That is were prosperity came from.
second policy?
After the war, President Harding promised a “return to normalcy”. The republicans believed in import tariffs which made it expensive to import foreign goods. Therefore, Harding introduced the Fordney-McCumber Tariff. These tariffs protected businesses against foreign competition and allowed American companies to grow even more rapidly.
Third policy?
One of the last republican policies was the idea that taxation should be as low as possible. Low taxation brought some benefits to the working man but brought even more to the wealthy. The republican thinking was that if people kept their own money, they would spend it on American goods and wealthy people would reinvest their money in industries as well as working harder.
How much did wealth increase?
Due to all of these policies, wealth in the USA increased from an average annual industrial wage of $1,158 in 1919 to $1,304 in 1927.
Conclusion
In conclusion, republican policies created a pro-business environment and created trust in the government. Businesses would be free to expand without being held back and the economy grew.
