During the 1920s, the government adopted a laissez-faire attitude towards businesses and the economy. There were few regulations placed on businesses during this time. It can be argued that this contributed to the start of the Great Depression. Because there were few controls on banks and on the stock market, banks invested money that had been deposited in the banks into the stock market. Additionally, people were able to buy stocks by only making a small deposit. This lack of regulation set up the potential for disaster, which occurred when the stock market crashed.
It is because of many situations similar to this that more people began to feel the government should have some role in regulating the economy. These people pointed to abuses in the past in the workplace, such as poor, unsafe working conditions and the use of child labor, as reasons why the government should be involved in the economy. They also pointed to the bad conditions that had existed in the meat industry as another example why the government needs to have some regulation of the economy. Finally, the events leading to the Great Depression described above gave further support to the idea of the government having a role in the economy. These people believe that the government needs to have a role in the economy to prevent abuses from occurring.
https://smallbusiness.chron.com/role-government-business-803.html
https://www.u-s-history.com/pages/h1564.html
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