were the policies of the republican governments of the 1920’s the most important reason for the economic boom in the usa?
The Republican government’s policies were a major contributing factor to the economic boom because of the fact that they led to an increase in businesses and people willing to go and get jobs. However, this was not the most important reason as it was the post- World War I (WWI) situation of USA which led to the economic boom in the 1920’s. It led to USA dominating world trade and became a leading superpower. Consumerism was very important in the economic boom it led to people buying loads of materials and technology. This contributed greatly to the US economy but, it was fuelled by credit given by banks and confidence as this led consumers to believe that the boom will last forever and that they could buy what they wanted and pay for it later.
Firstly, the Republic government had implemented many policies which all led to changes into government intervention. The first policy that the republican government believed in was the policy of “Laissez Faire”. The policy meant that government did not interfere a lot with businesses because they kept the corporate tax low meaning that the businesses got to keep l lot more of their revenue. This led to the boom as more businesses opened because it was more profitable and this in turn led to more wealth for the government. Another government policy was that “Rugged Individualism” and this was the belief that people worked hard to earn money hence they should keep most of it and this was implemented by keeping the income tax low. This led to an economic boom as more people came out of retirement to work as they kept more of the money. The government did have a period of interference in 1924 when they implemented the Fordney McCumber Act and this meant that there were tariffs implemented on US imports. This made them much more expensive hence people opted to buy domestic products; keeping the wealth within USA and them not having to spend more money for high import demands. Even though, these policies led to the increase in domestic sales, growth in the employed and businesses it was not the most important reason as USA’s position after WWI led them to have such policies and dominate the world trade.