The Politics of Boom and Bust

The Politics of Boom and Bust - The Politics of Boom and...

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The Politics of Boom and Bust 1920-1932 A. Introduction A. Three Republican presidents – Warren G. Harding, Calvin Coolidge, and Herbert Hoover . . . In a retreat from progressive reform, Republicans . . . cooperation with big business. . . . B. Meanwhile, foreign policy . . . II. President Harding A. When he won the election with the biggest landslide ever in 1920, he was a likeable guy, a newspaperman by trade, a lieutenant governor of Ohio, and a Senator . . . B. The “Ohio Gang” . . . Charles Evans Hughes was his Secretary of State, . . . Andrew W. Mellon was the Secretary of Treasury . . . Herbert Hoover was the Secretary of Commerce . . . But thee were some bad choices too – Secretary of Interior was a Senator Albert B. Fall, and Attorney General Harry M. Daugherty would become infamously known as the “Ohio Gang.” C. All together their dream was not “laissez-faire” but to have government guide business along the path to profits. D. This was made easier as Harding got to appoint 4 SC judges during his 3 year presidency, and the Court would cut away at different progressive legislation. For instance in Adkins v. Children’s Hospital (1923), the Court reversed Muller v. Oregon . . . E. Domestically, the President did several things. 1. As I stated earlier, Mellon sought to lower taxes for the rich, did away with the inheritance tax, but in the process he did NOT lower the rates for taxpayers earning less than $66,000!! . . . Mellon also sought to balance the budget and reduce the national debt, . . . 2. He did not raise the tariff with the Fordney-McCumber Tariff Law from the 27% of the Underwood Tariff of 1913 to about 38.5%! , , , 3. With both the tax reductions and the raising of the tariff, Mellon and Harding ran into opposition from Midwestern Republicans and southern Democrats, who combined to form the Farm Bloc. 4. But Harding and later Coolidge were undeterred . . . . Thus they used their powers to convert regulatory bodies like the ICC and the Federal Reserve Board into pro-business agencies. Trickle down economics
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This note was uploaded on 09/19/2011 for the course HISTORY GEA2000 taught by Professor Mr.adesina during the Spring '11 term at Broward College.

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The Politics of Boom and Bust - The Politics of Boom and...

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