Question

Governmental policy during the 1920s was predominantly conservative, meaning that the government did what it could to foster private business. Discuss at least two examples of this.

Answer 1

In the 1920s, U.S. government policies were conservative and aligned with pro-business interests, as exemplified by protective tariffs and significant tax reductions for wealthy individuals and middle to upper-middle-class families.

Step-by-step explanation:

During the 1920s, U.S. governmental policy was predominantly conservative, prioritizing the fostering of private businesses. Government officials like Vice President Calvin Coolidge embraced the notion that "the business of America is business," reflecting the administration's pro-business orientation. There are two significant examples that illustrate this conservative and pro-business era:

• Congressional actions to protect domestic industries through tariffs made foreign goods more expensive, consequently shielding U.S. businesses from international competition.
• Legislation that significantly reduced the tax rates for the wealthiest individuals and increased exemptions for the middle and upper-middle-class families, effectively lifting the tax burden and fostering wealth accumulation.

These policies signaled a return to a laissez-faire approach reminiscent of the Gilded Age and were indicative of a government that sought to create an environment conducive to corporate growth, with minimal intervention in business affairs.