Republican economic policies

Question 1

who were the 3 presidents & dates

Answer 1

WARREN HARDING
‘Return to normalcy’
1921-August 1923

CALVIN COOLIDGE (Silent Cal)
‘The business of America is business’ / ‘do-nothing’
August 1923-29

HERBERT HOOVER
Most interventionist
1929-33

Question 2

list the main themes of repub policies

Answer 2

LAISSEZ-FAIRE
RUGGED INDIVIDUALISM 
PROTECTIONISM
HELP BIG BUSINESS
AMERICANISM (Isolationism)

Question 3

what is laissez faire & what it entails

Answer 3

Laissez-faire (non-interference) based on the notion that those involved in the operation of the economy (bankers, industrialists, merchants etc) should be allowed to carry on their business affairs free of government regulation

Low taxes & few regulations. → businessmen chase profit with no fear of interference
Believe to be the result = high profits, more jobs & good wages

Question 4

famous quote by coolidge

Answer 4

“The business of America is business”

Question 5

what is rugged individualism

Answer 5

People achieved success through their own hard work
Patriotic idea of ‘Every person for themselves’ → all Americans should work for themselves and fix their own issues = transferred into a policy of little government intervention in social service and welfare.

Question 6

what is protectionsim

Answer 6

Tariffs on imported goods to limit foreign competition & encourage spending on US goods

Question 7

what is help. big business (link w protectionism)

Answer 7

conservative business policies = designed to help big businesses through tax, tariffs or assisting the build-up of monopolies
Businesses should be free to set own regulations regarding wage rates, working conditions etc in order to prosper = national growth
Cut taxes to large businesses → closely linked w/ protectionism BUT→ this was to assist the success of a large business and boost the US domestic economy

Question 8

what is americanism

Answer 8

Focused on American industry and economy → remaining apart from the political affairs of other countries

American economic priorities should be put first before international affairs

Question 9

Harding insisted he wanted to…

Answer 9

“proclaim Americanism and acclaim America”.

Question 10

what was the main aim of harding

Answer 10

limited government intervention → ‘return to normalcy’ (return to way of life before WWl)
Reflected the popular mood of the nation at the time

Question 11

what was harding’s policy of ‘America first’ & what were the Acts that assisting w this

Answer 11

Harding ensured to put ‘America first’
Insisted that he wanted to “proclaim Americanism and acclaim America”. (MS)

Passed the Sheppard Towner Maternity Aid Act 1921 → provided federal aid to states to encourage them to build infant and maternity health centres
Cuts to government spending → the Budget and Accounting Act 1921 made departments present budgets to the president for approval; $5,000 million in 1920, $3,333 million by 1922.

Question 12

harding introduced tariffs as part of protectionist policy. what was a part of this (SHD) & why were tariffs beneficial

Answer 12

Put tariffs on imported goods to limit the competition from foreign imports → protect American industry and limit foreign comp.

1922 Fordney-McCumber Tariff raised tariffs to their highest levels.
The Tariff Commission gave the President the power to raise/lower as much as 50% → used 37 times, 32 of which to increase tariffs. (LO)
High tariffs were beneficial in the short-term as they allowed for federal aid to be given to states for maternity and infant health programs.

Question 13

what was a negative effect of protectionis/tariffs

Answer 13

Decreasing purchasing power → Tariffs placed on imported goods reduced competition for domestically produced good = domestic consumers pay more for goods & services.

Reduced levels of international trade → more difficult for US to export its surplus production.

Question 14

High tariffs placed on food imports (1921 Emergency Tariff Act) & loans offered (1923 Agriculture Credits Act). what was the outcome of this

Answer 14

Failed to solve the problem of overproduction and low prices

Question 15

what theme did coolidge take up most

Answer 15

laissez faire

Question 16

what policies came under laissez faire (coolidge)

Answer 16

Taxation policies
Treasury Secretary Mellon cut taxes for the rich & companies + Excess profits tax was reduced
Rate of surtax fell from 65% to 25%

Question 17

to help big Businesses Treasury Secretary Mellon cut taxes for the rich and big companies. Between ????-????, Mellon handed out rebates and credits to corporations/industrialists amounting $? billion.

Answer 17

1920-28

$3.5

Question 18

what Act increased corporate and income taxes to help big business (coolidge)

Answer 18

The Revenue Act of 1932

Question 19

what was a negative impact of coolidge’s policy of help big business

Answer 19

Disparity of wealth - especially between urban and agrarian sectors in US society.
Much of the farming sector never recovered from the post-war recession = overproduction → depressed prices.

Resulting in market saturation, the taxation system greatly favoured higher income earners & Allowed for the development of vast holding companies

Question 20

what was hoover like as a president (policies)

Answer 20

More Interventionist but believed that excessive federal government interventionism would ruin the economy
Progressive → supported labor, public works to the unemployed, and money for farmers (IH)

Question 21

what was the Agricultural Marketing Act 1929 (hoover)

Answer 21

Established a Federal Farm Board w funds of $500million to create farmers’ marketing cooperatives called ‘stabilization corporations’

enabled gov to lend money to farmers through these cooperatives which tried to fix reasonable price levels to ensure that goods were sold at a profit by farmers

Question 22

Hoover established relief agencies. what was one

Answer 22

the President’s Organisation for Unemployment Relief which aimed to promote + coordinate local relief efforts

Question 23

Once aware his policy of voluntaryism was failing, what did Hoover introduce

Answer 23

a series of measures to relieve crisis of unemployment:
Reconstruction Finance Corporation 1932:
The Emergency Relief Act 1932:
Home Loan Bank Act 1932:

Question 24

what was the Reconstruction Finance Corporation 1932:

Answer 24

largest federal aid given → US$2 billion in loans to ailing banks, insurance companies, & railroads
This was sustained by FDR in his presidency as part of his economic policy towards the GD

Question 25

The Emergency Relief Act 1932

Answer 25

Provided US$300 million to state govs to help the unemployed

Question 26

Home Loan Bank Act 1932

Answer 26

To stimulate house building & home ownership. 12 regional banks set up with a collective fund of US$125 million, offering up to 50% assistance for those who couldn’t afford to pay off mortgages

Question 27

Hoover Persuaded state & local city govs to expand their public works programmes & spending by how much

Answer 27

US$1.5B

Question 28

Failed to stop the enactment of the protectionist Hawley-Smoot Tariff Legislation. What did society think of this & what did Michael Parrish say

Answer 28

many think it exacerbated the GD

The Hawley-Smoot Tariff “choked off international trade & compounded economic misery” (Michael Parrish)

Question 29

Hoover opposed any form of dole and insisted that voluntary effort would give ?

Answer 29

“assurance against suffering”

Question 30

Hoover insisted on higher taxes and government spending cuts to balance the budget. what was the impact

Answer 30

worsened the Depression by decreasing the purchasing power of the employed

Question 31

Hoover’s measures ultimately failed to pull the USA out of the Depression. what is the famous saying

Answer 31

‘in Hoover we trusted now we are busted’

Question 32

what did Clements say about Hoover’s policies

Answer 32

Hoover’s policies were “not far reaching enough” to address the scale and seriousness of the Depression (Clements)

Question 33

what happened to Hoover’s Grain Stabilisation Corp

Answer 33

was destroyed by the world collapse in grain prices

Question 34

By 1932 what happened to the Federal Farm Board created to assist farmers

Answer 34

it failed = agricultural policy failed
It was paying farmers artificially high prices & this couldn’t continue in the long term
Treated agriculture as a domestic issue & failed to take account of foreign considerations