The Economic Philosophies During the 1920s
During the Roaring Twenties, the United States was led by 3 conservative Presidents: President Harding, President Coolidge, and President Hoover. These three Presidents believed that the government should not be involved in the economy or the lives of individual citizens. This philosophy was very different from the beliefs of the Presidents who led the country during the Progressive Era. These progressive Presidents; President Roosevelt, President Taft, and President Wilson believed that the government should work to protect American citizens and help the economy grow. While both groups believed the key to prosperity was promoting business, each group of leaders led the country in a different direction. The Progressive Presidents led the country toward prosperity and regulations that created better living conditions, while the Conservative Presidents led the country toward false prosperity and the Great Depression.
Presidents Hoover, Harding, and Coolidge all believed in "laissez faire". This means that "they believed the government should not interfere or intervene in the nation's economy" (Textbook 1). Each President and their congress did not set regulations to guide businesses, and did not become involved in the economy. This philosophy, which was a major part of all three Presidents' policies, contributed to the Great Depression and worsened the American economy greatly.
President Hoover also believed in the philosophy of "rugged individualism". Hoover believed that the citizens of the United States could succeed through their own efforts to take care of themselves and their families instead of relying on government support (Textbook). In 1930, Hoover demonstrated his belief in rugged individualism when he addressed to public and stated, "I do not believe that the power and duty of the government ought to be extended to the relief of individual suffering...The lesson should be constantly enforced that though the people support the government, the government should not support the people" (Textbook 4). Hoover believed the people should aide the government, but that the government should not aide the people. Had Hoover not believed in rugged individualism, and extended help to struggling Americans, he could have lessen the impact of the Great Depression.
Similar to President Hoover, President Coolidge believed in laissez faire and leaving businesses alone. In one of President Coolidge's statements, he said, "The chief business of the American people is business. If government kept its hands off the economy, business would prosper" (Textbook). President Coolidge believed that the economy could only grow if the government did not interfere with the businesses. Coolidge could have prevented the large income gap that occurred during the Roaring 20's by regulating businesses. Harding believed in these same philosophies.
The three conservative Presidents based their economic decisions based on the philosophies of laissez faire and rugged individualism. As a result, the lack of government involvement in the economy decreased and the nation plunged into the Great Depression.
For more information, please see the website below.
Presidents Hoover, Harding, and Coolidge all believed in "laissez faire". This means that "they believed the government should not interfere or intervene in the nation's economy" (Textbook 1). Each President and their congress did not set regulations to guide businesses, and did not become involved in the economy. This philosophy, which was a major part of all three Presidents' policies, contributed to the Great Depression and worsened the American economy greatly.
President Hoover also believed in the philosophy of "rugged individualism". Hoover believed that the citizens of the United States could succeed through their own efforts to take care of themselves and their families instead of relying on government support (Textbook). In 1930, Hoover demonstrated his belief in rugged individualism when he addressed to public and stated, "I do not believe that the power and duty of the government ought to be extended to the relief of individual suffering...The lesson should be constantly enforced that though the people support the government, the government should not support the people" (Textbook 4). Hoover believed the people should aide the government, but that the government should not aide the people. Had Hoover not believed in rugged individualism, and extended help to struggling Americans, he could have lessen the impact of the Great Depression.
Similar to President Hoover, President Coolidge believed in laissez faire and leaving businesses alone. In one of President Coolidge's statements, he said, "The chief business of the American people is business. If government kept its hands off the economy, business would prosper" (Textbook). President Coolidge believed that the economy could only grow if the government did not interfere with the businesses. Coolidge could have prevented the large income gap that occurred during the Roaring 20's by regulating businesses. Harding believed in these same philosophies.
The three conservative Presidents based their economic decisions based on the philosophies of laissez faire and rugged individualism. As a result, the lack of government involvement in the economy decreased and the nation plunged into the Great Depression.
For more information, please see the website below.
http://www.digitalhistory.uh.edu/teachers/lesson_plans/pdfs/unit9_1.pdf