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Government Control Over Business In The 1920's

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The proper role of government in Americans’ lives is to have control over business to help improve our economy. The lack of control over business in the 1920’s lead to the Great Depression and because of this mistake the government needs to be in control of the people's lives due to the providing benefits for businesses and jobs. The government's role in Americans lives during the 1920’s was a “hands off”, while the Great Depression’s government at the time took control in businesses and people's lives. During the 1920’s, coming back from war, the American government saw this as a time high income and feeling as if business could regulate themselves. Due to this, the American people began to overuse credit and have an increase of stock market …show more content…

The government was choosing not to regulate businesses with their hands off policy. Since the government did not have control over businesses they couldn't regulate, wages, prices, or even how much could be produced. The prices of goods were decreasing due to overproduction of goods which lowered income. Due to conspicuous consumption in the economy, people felt as if they didn't need to get jobs or these low incomes were good enough to support their family. By using credit they could buy what they wanted and they felt they needed. Overtime the American society began to use way too much credit, and didn't have the money to pay back these loans. Banks and businesses didn't see this as a bad thing until the stock market crashed. According to, the Herbert Hoover Bio, when Hoover went into presidency when a hands off policy, soon the depression happened. His presidency couldn't work to help recover from the depression because he didn't want to regulate any business and wasn't working to help the millions that were suffering. He worked primarily on helping only big business from the Hawley-Smoot Tariff. This tariff didn't help and lead to the depression because negatively affecting American trade. Unfortunately, because of not regulating business and only helping the wealthy the American economy failed and went into a

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