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The American Presidency 1901–2000

Laissez-faire, the boom and the Wall Street Crash

  • 3 things to know
  • A2 Unit 1

Overview

Fordney-McCumber Tariff, teapot Dome scandal and hoover's philosophy of rugged individualism.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

What was the Bonus Army, and why did it damage Hoover?

Key term

What is meant by laissez-faire?

Key term

How did Andrew Mellon apply the doctrine of laissez-faire?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What did Harding mean by a return to normalcy?

    Model answer

    Harding promised in 1920 to abandon crusades and reform and to leave business alone, returning to the limited government of the years before Wilson.

  2. 2

    What is meant by laissez-faire?

    Model answer

    Laissez-faire is the doctrine that government should leave the economy to regulate itself, keeping taxation, spending and regulation to the minimum.

  3. 3

    How did Andrew Mellon apply that doctrine?

    Model answer

    As Treasury Secretary throughout the 1920s Mellon cut income taxes repeatedly, especially on high incomes, and reduced the national debt, arguing that money left with investors would create prosperity for all.

  4. 4

    What was the Fordney-McCumber Tariff?

    Model answer

    The Fordney-McCumber Tariff of 1922 raised import duties sharply to protect American manufacturers, and provoked retaliation against American exports.

  5. 5

    What was the Teapot Dome scandal?

    Model answer

    Teapot Dome was the corrupt leasing of naval oil reserves by Harding's Interior Secretary in return for bribes, and it became the worst scandal of the decade.

  6. 6

    How did Coolidge understand the presidency?

    Model answer

    Coolidge believed the office should intervene as little as possible, declared that the business of America was business, and left the boom to look after itself.

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