President Warren G. Harding's idea of a "return to normalcy" affected the economy by reducing the amount of government interference in the economy and raising tariffs.
Harding was a firm believer in the concept of laissez faire economics. This belief focuses on having the government stay out of the regulation of the economy. Instead of the government monitoring the economy, businesses would regulate each others actions through competition.
Along with this, Harding tried to protect American businesses by implementing tariffs. These tariffs increased the price of foreign goods, making it more likely that citizens would be goods made in America.
