The legacy of the First world war
- The USA was the biggest creditor to other nation during the war.
- between 14 and 16 $2.3 billion in loan were made to the Allies
- They become the most dominant industrial power in the word
- They were able to mobilise male and female worker of all races.
- War lead to the development of stronger bureaucracy, so the government should implement it wishes.
- Ecomice rival in Europe had suffered badly due to the war.
- for example, German suffered Hyperinflation in 1923
- The US began to capture this market supplied by this nation.
- strengthening their economy and weakening their economies further
1 of 5
Republican economic policy, 1920-32
- The there policy should be defined as a Laissez Faire. The economy was largely left to run it itself.
- The Frist republican president was Warren Harding, he was viewed as being not particularly good with Corruption rife within his administration.
- Calvin Coolidge was a very quiet man who concentrated on administration rather than intervention.
- They both come from small towns and had little experience of national politics.
- Coolidge was succeeded by Herbert Hoover believed recovery the wall street crash depended on aiding big business.
2 of 5
President Warren G. Harding (1920-1923
- Elected on the platform of a return to "normalcy".
- He was popular but ill qualified to be president.
- He relied heavily on group of corrupt cronies know as the "Ohio Gang"
- Cut government Spending through measures such as the Budget and Accounting act (1921)
- in 1920 government spending was $500m but by 1922 this had fallen to $3373m
- Introduced the Sheppard-Towner Maternity aid act(1921) providing finance aid to pregnant women. Some see this a base for some new deal programme under FDR.
- Harding often demonstrated favouritism toward the wealthy.
- The Emergency Tafrid Act 1921 reduced taxes on the wealthy and corporation.
- The Fordney- McCumber tariff act 1922 made imported good more experience helping America Thrive.
- Evdecinvce of corruption in the Administration emerged in what become know as the Teapot Dome scale.
- This damaged the reputation of Administration further after it poor handling of strikes the year before.
3 of 5
President Calvin Coolidge (1923-28)
- He Assumed the presidency and would retain the position in 1924
- He was a firm believer in Laissez-faire policies.
- Some have criticised him for his low work rate, as well as his reluctance to address important social & economic issues.
- ØHe was not afraid to court publicity & grew increasingly popular, especially with ‘Middle America’. ØThe public generally regarded him as calm & unflappable. He gave off an aura of confidence which persuaded many Americans that prosperity was secured for the long-term.
4 of 5
Andrew W. Mellon, Secretary of the Treasury (1921-
- Could be seen as a key figure in shaping America economic policy in the 1920s and early 30s
- He believed if the economy grew, wealth would filter down natural down to all class.
- He favoured high tariffs on imported goods, as well as low taxes.
- He was a strong support of big business.
- high traffic led to a huge budget surplus, so allowed him to reduce taxation level on a regular basis.
- low taxes helped to stimulate consumer spending during the 20s
- Ofen credited with bringing the prosperity of the 20s
- his policies can be seen as a cause of Both the Great Depression and the Wall street crash.
5 of 5