How Far Were the Economic Policies of the Republican Government Mainly Responsible for the Collapse of 1929-33?

2370 WordsMar 22, 201110 Pages
From 1921 and throughout the 1920's, the Republican party were in power. This period of time was known as the 'roaring twenties' due to the huge economic growth that America was facing, it was by not interfering that the Republican Party achieved this level of success. They believed in a laissez-faire style of government and rugged individualism which meant that they didn't interfere and thought everyone could succeed in life without their intervention. Many believe that this lack of interference was the main cause of the great depression, also known as the Wall Street Crash. As a party that favoured this style of government they favoured low taxes on the rich and minimal regulation. This was ideal for the rich businessmen; they were…show more content…
Hoover then tried something that until then no president had done; he tried to create public work schemes. This surely shows us the extent to which Hoover was prepared to go to in order to help end the downward economic spiral. For the first time, a president was taking an active roll in America, it may not have been much, but it was a start. Some people took the strain off Hoover, such as Henry Ford in 1931 with statements such as “The Average man won't really do a days work unless he is caught and can't get out of it. There is plenty of work to do – If people would do it”[10]. Hoover was clearly trying, but trying doesn't quite cut it. Hoover wanted to help the American economy to recover by encouraging American businesses to work together; he did this by passing the Smoot-Hawley Tariff in 1930, an improved version of the Fordney-McCumber tariff. This meant that American Businesses had to buy from American Suppliers so as to continue making a profit; it also meant that other countries could no longer sell as much produce to America, one of the worlds largest consumers. Other countries were of course suffering in the same depression which was worsened for them by the effects of the First World War. As a result of this other countries began to pass tariffs of their own, this reduced international

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