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How Did Politics Affect The Economy Of The 1920's

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Politics and Economics of 1920’s “Competition is not only the basis of protection to the consumer, but is the incentive to progress.” This quote by Herbert Hoover, the first US president of the 1920’s, demonstrates his belief that competition among businesses would lead to progress. Businesses began to absorb smaller industries and dominate the cities and towns (“1920’s America: Economy, Politics, and Culture”). As businesses began to expand, so did the people’s thoughts and opinions. There were many aspects of this decade that motivated society and government. In the 1920’s, presidents influence, prohibition, and women’s role affected politics while the Cultural Civil War, Great Depression, and mass culture affected the economy. The 1920’s sparked much need for governmental influence in order to keep society under some sort of control, which led to three different presidents being elected in a ten year period. In order of election, Warren G. Harding, Calvin Coolidge, and Herbert Hoover were elected (“Politics in the 1920’s”). All of these men had something in common with their beliefs and ways of running the country, …show more content…

Consumers began to decline in spending while businesses had increased the inventory (“Politics in the 1920’s”). As the years went by, much more than just inflation began in the economy. Banks began making “questionable loans” while the Federal Reserve Board put an attempt to “curb the speculation by raising interest” (“Politics in the 1920’s”). The Great Depression had just started. The stock market crashed in 1929, along with a drop in industry production and employment rates (“Politics in the 1920’s”). Mostly all of the big corporations, such as car manufacturing and construction businesses were hit hardest, as well as first (“Politics in the 1920’s”). The Great Depression would last into the early 1930’s, affecting millions and becoming a time period everyone would grow to learn

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