Republican Economic Policies (Tariffs, Low Taxes, Laissez-Faire) Flashcards

What is a tariff?

A tax on imported goods that makes foreign products more expensive.

To raise tariffs and protect US industry by making imports dearer than US goods.

They make imports cost more, so people buy more US-made goods, helping factories keep or add jobs.

“Leave alone”: the government should interfere as little as possible in business.

Warren Harding, Calvin Coolidge, and Herbert Hoover.

To leave people and firms with more money to spend and invest.

Cutting taxes for business would help them grow, create jobs, and raise wages.

He was the Treasury Secretary. He pushed low taxes, low government spending, and a balanced budget.

It means government spending does not go over its income. Republicans wanted this to avoid debt and keep taxes low.

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Other countries often raised their tariffs, which made it harder for US goods, like farm produce, to sell overseas.