Governmental Policy

Definition

Governmental policy refers to the decisions and actions taken by a government to regulate various aspects of society, including economics, social issues, and foreign relations. In the context of the 1920s, this term highlights the shift towards a more interventionist role of the government in the economy, reflecting broader societal changes and the response to World War I. These policies were instrumental in shaping the social and economic landscape of the decade, impacting everything from business practices to individual liberties.

5 Must Know Facts For Your Next Test

1. The 1920s saw a shift from Progressive Era reforms towards a more laissez-faire approach, emphasizing minimal government intervention in business.
2. Governmental policies during this time included tax cuts for individuals and corporations, encouraging consumer spending and investment.
3. The Federal Reserve played a crucial role by manipulating interest rates to encourage economic growth, leading to an economic boom in the latter part of the decade.
4. The rise of consumer culture was bolstered by governmental policies that supported mass production and advertising, creating new market dynamics.
5. The decade ended with a stark contrast between government policies favoring economic growth and the looming financial instability that contributed to the Great Depression.

Review Questions

• How did governmental policy in the 1920s reflect a change in attitudes towards economic intervention?
  • In the 1920s, governmental policy shifted towards a more laissez-faire approach compared to previous decades. This change reflected a growing belief that minimal government intervention would foster economic growth and prosperity. Tax cuts for businesses and individuals aimed to stimulate consumer spending, illustrating this shift in policy that prioritized economic expansion over regulation.
• Evaluate how Prohibition exemplified governmental policy during the 1920s and its unintended consequences.
  • Prohibition exemplified governmental policy through its attempt to regulate moral behavior by banning alcohol under the 18th Amendment. However, this policy led to unintended consequences such as the rise of illegal speakeasies and organized crime. Instead of achieving its goal of reducing crime and corruption, Prohibition highlighted the challenges of enforcing such sweeping regulatory measures and ultimately resulted in its repeal in 1933.
• Analyze how isolationism shaped governmental policies during the 1920s and its implications for U.S. foreign relations.
  • Isolationism greatly influenced governmental policies during the 1920s as the U.S. sought to distance itself from European conflicts after World War I. This led to policies that focused on domestic stability rather than international engagement. The implications of this isolationist stance meant that while America enjoyed economic growth at home, it also missed opportunities for global leadership and diplomatic influence that could have altered its role in subsequent international conflicts.

Related terms

Prohibition:

A nationwide constitutional ban on the production, importation, transportation, and sale of alcoholic beverages in the United States, established by the 18th Amendment in 1920.

New Deal:

A series of programs and reforms introduced by President Franklin D. Roosevelt in response to the Great Depression aimed at economic recovery and social welfare.

Isolationism:

A foreign policy approach characterized by a focus on domestic affairs and a reluctance to engage in international alliances or conflicts, prevalent in the U.S. during the 1920s.