Republican Party policies in the 1920s
Republican beliefs
The Republican PartyOne of the two major American political parties. Republicans tend to hold a more conservative viewpoint on politics and society. was in power throughout the 1920s. The presidents were Warren Harding, Calvin Coolidge and Herbert Hoover. Following World War One, the Republicans offered the American public a return to ‘normalcy’, the idea that politics and life in general should return to how things were in the late 19th century.
The importance of business
The Republican Party’s members included many businesspeople like Herbert Hoover and Andrew Mellon. Their beliefs can be summed up by Coolidge’s famous phrase from 1925: “The chief business of the American people is business.” These business owners felt:
- that the government should be run on business principles, efficiently and within set budgets
- hat successful American businesses would benefit everyone as there would be more investmentMoney or capital put into a business for profitable returns, for example interest or income. and job creation.
Laissez faire
Republican policy centred on the idea of laissez faireWhen a government doesn't believe in interfering in the lives of individuals and businesses. For the Republicans, liberty or freedom to live your life and run your business was one of the most important roles of government. This meant that the Republicans believed in leaving the economy to manage itself. According to this belief, business and industry could grow unchecked - free from rules and regulations that might limit growth. With few regulations, costs would be lower and owners would be able to invest more into business development. There was also a strong belief in rugged individualismPersonal liberty and free competition, and the idea that people should be self-reliant. with Republicans resisting the call to intervene too much in society’s problems. This was because they felt that government help would undermine an individual’s capacity to solve their own problems.
Protective tariffs to prevent competition from exports
Although unprepared to intervene by regulating business, the Republicans were keen to protect domestic industry by placing high tariff A tax or charge placed on imported or exported goods and services. on imports from abroad. They introduced the Fordney-McCumber Tariff in 1922 and built on this with the Smoot-Hawley Tariff in 1930. These acts placed import duties on many goods entering the USA. As a result, foreign goods became more expensive. This supported American manufacturers but also prevented US products from being sold in huge quantities overseas.
