Question
- What were the effects of Demobilization on America after WWI? What did Harding mean by "Return to Normalcy"? Define Laissez Faire economics and what 2 things did the 1920's Presidents do to improve the economy? Define Tariff and how did the Fordney McCumber Tariff of 1922 effect Britain and France? What did President Hoover mean by Rugged Individualism?
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Julieta
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Answer
**Effects of Demobilization on America after WWI:**Demobilization, the process of transitioning from wartime to peacetime, had significant effects on the US economy and society. Millions of soldiers returned home seeking jobs, leading to a surge in the labor force and increased competition for employment. Industries that had boomed during the war faced decreased demand, resulting in layoffs and economic slowdown. The sudden influx of workers combined with reduced production led to high unemployment and social unrest. Farmers, who had prospered during the war, also faced declining crop prices as European agriculture recovered.**Harding's "Return to Normalcy":**President Warren G. Harding's "Return to Normalcy" campaign slogan resonated with Americans yearning for stability after the tumultuous war years. It represented a rejection of progressive reforms and internationalism, favoring a return to pre-war values, limited government intervention in the economy (laissez-faire), and a focus on domestic issues. It was a call for a simpler time and a retreat from the global stage.**Laissez-Faire Economics and 1920s Economic Policies:**Laissez-faire economics advocates minimal government intervention in the economy, believing that free markets and individual initiative are the most effective drivers of prosperity. It emphasizes deregulation, low taxes, and limited government spending.Two key economic policies pursued by 1920s presidents (Harding, Coolidge, and Hoover) to improve the economy, in line with laissez-faire principles, were:1. **Tax cuts:** Significant reductions in income tax rates, particularly for corporations and wealthy individuals, aimed to stimulate investment and economic growth.2. **Deregulation:** Reducing government oversight of businesses to promote efficiency and encourage private enterprise.**Tariff Definition and the Fordney-McCumber Tariff:**A tariff is a tax imposed on imported goods. The Fordney-McCumber Tariff of 1922 significantly raised tariffs on a wide range of imported goods, aiming to protect American industries from foreign competition.This tariff negatively impacted Britain and France, as it made it more difficult for them to sell their goods in the American market. This hampered their ability to repay war debts owed to the United States, as they relied on export earnings to generate the necessary funds. The tariff contributed to strained economic relations between the US and its European allies.**Hoover's Rugged Individualism:**President Herbert Hoover's concept of "rugged individualism" emphasized self-reliance and individual initiative as the keys to success. He believed that individuals should be responsible for their own well-being and that government intervention should be minimal. He felt that excessive government assistance weakened the character and self-sufficiency of the American people. This philosophy influenced his approach to the Great Depression, where he initially resisted direct federal relief efforts, believing that private charity and local initiatives were more appropriate responses.