Republican Policies

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Laissez-Faire

  • Translation means 'Let it Be'
  • Reduce the Interference of Federal Government in Business
  • Was the attitude of successive Republican Government towards the Economy
  • 'Business of America is Business'
  • 'If it ain't broke don't fix it'
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Tariffs - Economic Isolation

  • 1922 Fordney McCumber Tariff
  • All non-American goods had a huge tariff paid on them (or entry tax)
  • Produced a huge domestic budgetary surplus
  • Most Americans coul only therefore purchase American Good
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Tax Cuts

  • Kept taxes as low as possible 
  • Benefitted ordinary people and the very wealthy more so
  • Republicans believed that if people had their own money, they would spend it on American goods 
  • The very rich would re-invest into business
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Trusts

  • Republicans encouraged the growth of 'Super-corporations' (known as 'Trusts')
  • Carnegie owned 98% of Steel
  • Rockerfeller owned most of US Oil
  • Trusts were considered as 'Captains' of Industry- did not need Govt. intervention
  • Trusts drove prices up of goods, so they could increase profit and re-invest wealth
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