Republican Government Policy 1920's
- Created by: izhodge
- Created on: 04-04-16 13:24
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- Republican Government policy
- Laissez Faire
- Federal Trade Commission was the body which regulated businesses, however with few regulations and staff to enforce them, they become less willing and more unable to operate efficiently
- Government was less invovled with economic planning thus allowing a FREE MARKET
- FREE MARKET is a system when the economy is left to run it's self with limited government intervention
- No regulation usually meant that profits were higher
- BUT There was nothing to prevent low wages, child labor or long working hours
- Taxation
- This was an attempt at returning to normalcy from before the war
- Taxes were lowered from the highest being 65% in 1920 to 25%in 1929
- MELLON by 1929 had handed out $3.5 billion worth in tax cuts
- Still allowed government to reduce national dept as they were running on a surplus due to no govt spending
- These cuts meant nothing to those who were too poor to pay tax anyway
- Only benefited the rich
- Isolationism
- American's were put off foreign conflict after the conflict with Mexico and WW1
- Disputes abuot America's business rights in Mexico were settled through diplomacy
- The USA made trade agreements with Japan rather than China( which would have boosted China's economy )
- These trade agreements helped fund the Manchurian railway
- This decision and the policy of isolationism reflected the US's priorities - trade over the morally correct thing to do
- These trade agreements helped fund the Manchurian railway
- American's were put off foreign conflict after the conflict with Mexico and WW1
- High Tariffs
- FORDNEY MCCUMBER ACT 1922
- Made tariffs higher on foreign goods to almost guarantee a domestic market
- More people were buying American goods rather than foreign ones
- This increased American business's profits as they had less competition
- BUT foreign countries put tariffs American goods so it was hard for farmers to export their produce
- FORDNEY MCCUMBER ACT 1922
- Laissez Faire
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