20s' Economic Philosophies and How they Failed
The three conservative Presidents of the 1920s had a similar economic philosophy called "Laissez Faire".
"Laissez Faire", translated to "Leave Alone". This was manifested by the Presidents lowering restrictions on big businesses, which allowed said companies to make massive profits. The Presidents of the 1920s, but especially Hoover, believed in a philosophy known as rugged individualism. Rugged Individualism means that people should succeed through their own efforts, and that they should help themselves in hard times rather than get any help from the government. This led to a time of very little government aid for the average person. This contrasted with the extremely successful economic philosophies of the Progressive Era. For example, Theodore Roosevelt's policy of the "Square Deal" spurred massive economic reforms like the Meat Inspection Act and the Pure Food and Drug Act. The government also created certain welfare policies which helped those in need, such as pregnant mothers and those below the poverty line during this time. |
"The chief business of the American people is business. If government kept its hands off the economy, business would prosper"(Textbook).
- Calvin Coolidge "I do not believe that the power and duty of the general government ought to be extended to the relief of individual suffering.... though the people support the government, the government should not support the people"(Textbook). -Herbert Hoover "We promise that relief which will attend the halting of waste and extravagance, and the renewal of the practice of public economy, not alone because it will relieve tax burdens but because it will be an example to stimulate thrift and economy in private life"(The Forgotten Depression). -Warren Harding |