Question

During the 1920s, which president adopted a laissez-faire toward business, which helped bring about the Great Depression?

(A) Woodrow Wilson
(B) Warren Harding
(C) Calvin Coolidge
(D) Herbert Hoover

Answer 1

The correct answer is C.

During the decade of the 20s, the so-called Roaring 20s, laissez-faire economic philosophy predomined in the US, which consist on a minimum govermental intervention in the economy. Under such deregulation conditions business could operate freely without supervision.

Both Republican presidents, Harding and Coolidge, implemented laissez-faire principles in the economy, but the first still did not apply them to businesses as he believed those needed governmental assistance, especially due to the existence of labor organizations. Therefore, it was Calvin Coolidge the one who applied laissez-faire policies to businesses.