How Far Were the Policies of the Republican Party the Main Reason for America’s Economic Success in the 1920’s

2567 Words Apr 8th, 2015 11 Pages
How far were the policies of the Republican Party the main reason for America’s economic success in the 1920’s [50 marks]

Although America remained neutral and did not join World War One until 1917, they were already increasing their country’s profits by selling goods such as: weapons, food, equipment and other ammunition to both sides of the war. During World War One, as well as selling goods, America became ‘the banker’ to the rest of the world: loaning countries money at a very high interest. According to the First World War commissions “Britain, France and Italy owed the USA $22 billion plus interest”, this is showing that USA was at a very stable place financially even before the 1920s began. When the war ended Woodrow Wilson
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The Democrats liked to get involved with the government and society whereas the Republicans did as little interference as possible and let businesses and individuals run their companies how they wanted to making the American dream a reality. The Republicans remained in power throughout the 1920’s because they won votes off the senate and the House of Representatives; the public supported the Republicans because of the policies they introduced during the decade. In my opinion the most important policy that the Republicans introduced in the 1920’s was tariffs. This policy was put into place when Warren Harding promised a “return to normality” In order for his promise to be fulfilled he increased tariffs and introduced the Fordney McCumber Act of 1922. The Fordney McCumber act imposed a tax on goods from foreign countries making them ALWAYS more expensive than American goods. Also cutting taxes would be an effective policy for the Republican government because they believed that if taxes were low, people would have more money to invest in stocks and shares. These investments would help the American industries expand. The danger with the Fordney McCumber tariff for the American economy in the long run was that every country used them and stopped American exports, which damaged the international trade, a reason why the Republicans disliked trade unions. The name of this Republican policy was protectionism. Another policy that was…

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