Reference no: EM132432749

Question: During the 1920s, the U.S. government, under the guidance of Harding and Coolidge, took a backseat in issues pertaining to the economy. They believed in capitalism as the driving force behind the economy and decreased regulation by the federal government. During this period, big businesses regained a lot of power and grew exponentially, labor unions became ineffective without the support of government regulations, and consumer spending increased. While the economy looked great, warning signs pointed to problems that will eventually lead to the stock market crash and Great Depression of the 1930s.

After analyzing the political and economic policies of Harding and Coolidge, do you believe the federal government of the 1920s could have taken a more active role in helping to regulate the economy and would this have prevented the stock market crash of 1929 and the Great Depression? Is it the government's responsibility to be involved in the economy? Support your answer with specific examples and make sure to cite all of your sources.