The Boom and its impact #2

1. Republican Policies for Prosperity

   • Republican governments in the 1920s adopted a laissez-faire approach.

     • Little regulation of businesses, banks, or stock market.

     • Embraced rugged individualism and hard work ethos.

   • Reduced income tax and encouraged spending.

   • Introduced Fordney-McCumber Tariff to protect US industries.

2. Poverty in Rural Areas

   • Overproduction in farming leading to price drops.

   • Farmers struggling with debts and loss of farms.

   • Decline in cotton demand affecting southern farmers.

3. Decline of Old Industries

   • Coal industry struggles against oil industry.

   • Monopolies keeping prices high and wages low.

   • Urban poverty due to migration from rural areas.

• McNary-Haugen Bill

  • Repeatedly proposed to aid farmers but vetoed by Coolidge.

  • Aimed to buy surplus farm products to support farmers.

• Impact on Social Groups

  • Sharecroppers facing extreme poverty and discrimination.

  • Working-class women poorly paid and struggling.

• Wealth Disparity

  • Large wealth gap between rich and poor.

  • Poorest 60% owning less than 5% of the wealth.

• Migration to Urban Areas

  • Farmers migrating to cities for work, increasing urban poverty.

  • African Americans facing challenges in finding work and housing.

This illustrates how Republican policies fuelled economic growth but left certain groups behind, leading to disparities and challenges in various sectors.