The Roaring Twenties...
The President's philosophy of the 1920’s towards business affected the operations of American businesses in many different ways. The three different Presidents in control during the 1920’s were Warren G. Harding, Calvin Coolidge, and Herbert Hoover. The American business was affected differently under each of their presidency. Under the minimal presidency of Warren Harding from 1921 to 1923 the government became very tainted because of Harding’s choice of people he put in power. Also, with the end of the war the United States went through wage cuts, unemployment and growing farm distress. Also Harding lowered taxes and repealed wartime excess of profits tax. He also reduced railroad rates and promoted agricultural interests, a national budget system, a great merchant marine, and a department of public welfare.
Despite what Harding did for the United States, he also let slip by him the great scandal brought on by Albert B. Fall. Because Harding was not very involved in the government or business Fall was able to lease two critical government oil reserves and in return he received illegal payments exceeding $300,000. Under the presidency of Calvin Coolidge or “Silent Cal” the businesses of America greatly benefited. Coolidge gave his support of American business in many ways. He supported the business by raising tariffs; this helped the manufacturers by making foreign goods more expensive and American goods more easily gotten. Coolidge was also less inclined to use the government to aid citizens. Herbert Hoover was the thirty-first President in office from 1929 to 1933. Hoover had congress pass the Agricultural Marketing Act to help farmers that were suffering form low incomes.
He also tried to have prohibition enforced but nothing came of the effort. Hoover also believed that the aid the unemployed needed should come from local governments not the federal government. His policy was to lend insurance companies, banks, railroads, state, and county governments money to stimulate activity in the economy. Many people believed that he should have aided big businesses so those businesses in turn could provide employment thus helping the people during the time of crisis the United States was in at the time.