Question

In the view of many historians, which Republican "economic medicine" of the 1920s helped cause the "sickness" of depression during the 1930s?

Answer 1

"laissez faire"

Explanation:

For many historians economic liberalism(also known as "laissez faire") is the reason behind the economic crisis of the 1930s. They claimed that the market was unable to regulate itself and that it eventually collapsed. This so-called failure is what paved the way for Keynesianism which triumphed after 1929.

Libertarians contest this interpretation and claim that it was the loose monetary policy in the early twenties that led to that situation.