President harding promoted a strong american economy that was independent of
History · High School · Mon Jan 18 2021
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President Harding promoted a strong American economy that was independent of excessive government intervention. He advocated for a return to normalcy and sought to restore a more laissez-faire approach to economic policy. Harding's administration favored limited government interference in business affairs, aiming to create an environment conducive to economic growth. Key aspects of his economic philosophy included:
1. Reducing Regulation:
- Harding and his administration aimed to reduce government regulation on businesses. They believed that a less-regulated economy would encourage innovation and stimulate economic activity.
2. Lowering Taxes:
- Harding supported tax cuts to stimulate economic growth. The Revenue Act of 1921, also known as the Fordney-McCumber Act, reduced income tax rates, providing relief to individuals and corporations.
3. Protecting Tariffs:
- The Harding administration implemented protective tariffs to shield American industries from foreign competition. The Fordney-McCumber Tariff Act of 1922 raised tariff rates, intending to safeguard domestic businesses and jobs.
4. Balancing the Budget:
- Harding emphasized fiscal responsibility and sought to balance the federal budget. His administration aimed to reduce government expenditures to achieve financial stability.
5. Promoting Business Interests:
- Harding's pro-business stance was reflected in his appointments to key positions. He selected individuals with backgrounds in business and industry, signaling his commitment to fostering a business-friendly environment.
It's important to note that while Harding's economic policies aimed to promote independence and growth, they also had implications for income inequality, as the benefits of economic prosperity were not evenly distributed. Additionally, Harding's presidency was later marred by the Teapot Dome scandal, which involved corruption in the leasing of federal oil reserves. Despite these challenges, Harding's economic philosophy contributed to a period of economic expansion during the early 1920s.