During the 1920s, the U.S. government, under the guidance of Harding and Coolidg

Question

During the 1920s, the U.S. government, under the guidance of Harding and Coolidge, took a backseat in issues pertaining to the economy. They believed in capitalism as the driving force behind the economy and decreased regulation by the federal government. During this period, big businesses regained a lot of power and grew exponentially, labor unions became ineffective without the support of government regulations, and consumer spending increased. While the economy looked great, warning signs pointed to problems that will eventually lead to the stock market crash and Great Depression of the 1930s.

After analyzing the political and economic policies of Harding and Coolidge, do you believe the federal government of the 1920s could have taken a more active role in helping to regulate the economy and would this have prevented the stock market crash of 1929 and the Great Depression? Is it the government’s responsibility to be involved in the economy? Support your answer with specific examples and make sure to cite all of your sources.

Explanation / Answer

It is very much important to regulate the economy in a meaningful manner, Governments around the world today have no comfort to take backseat and intense government involvement is the only way for businesses to go ahead,

Today we have reached a point where government's political help is needed to almost many businesses to succeed in far away lands,

The Chinese government is the best example, It has regulated, helped, financed the nations companies to become the gaints they are today, Without government intervention and support it could have been impossible to create such large corporations in such a short time, Same story is true for many Russian companies.

Government actually has no business to do business, but in a messy world like today where capitalism, socialism and heavy state subsidies are order of day it is very important for companies and government to co-operate than confront each other to create large enterprises and successful companies.

Ref: Many governments today offer free prime lands to set up businesses,

Chinese government even offers free office space in some software parks and free sheds to start industries

Indian government has huge tax breaks for new entrants.

World is very different in 1929 compared to globalized 2016.

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