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Roaring Twenties


The policy promoted minimal government involvement in business and less support of labour unions. It was based upon the belief that if the government did what it could to foster private business then prosperity would eventually spread to most of the rest of the population and with this prosperity would come happiness. The Republicans were met with great approval when they cut taxes, offered construction loans and mail carrying contracts to private businesses. The Revenue acts of 1924, 26 and 28 which dramatically cut federal taxes was particularly applauded as was the transportation act of 1920 which restored to private management the nation's railways. Welfare capitalism was another policy, which made workers happy. It was a policy developed by managers who ran American firms and politicians - social workers employed by the firm provided free counselling and businesses offered stock-purchase plans to help workers save for retirement and insurance. Welfare capitalism was successful in seeing a rapid erosion of union membership during the 1920's, this in itself suggested people were content and was just one of many political developments which contributed to a large extent in justifying Hoover's claim the Americans were a "happy people".
             On the other hand whilst the 1920's were a time of great hope for many for some it was a time of great despair. Not all-political developments justified Hoover's claim that the Americans were a "happy people", some developments disproved this claim. For those that had the opportunity to advance because of political developments, or took the opportunity, it proved successful but for some it proved impossible because of political developments and the lack of government assistance to break the cycle of poverty, hopelessness and despair. Criticism was rapidly mounting from farmers in regard to republican agricultural policies. The abrupt end of wartime demand meant that the commercial agriculture of staple crops such as wheat sharply declined.


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