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During the 1920s the national and state governments did not regulate industry or manufacturing or economic institutions to protect the consumers. What regulation there was usually benefited business. Business was left pretty much alone to do as it wished. Government was left to a second hand role in the economy and concentrated mainly on relations with other nations. Federal regulations were especially favorable to the large corporations and the tax laws which were written encouraged business expansion. Banks were permitted to speculate in land and the stock market with little government regulations. High tariffs and war debts helped spread the depression world wide.

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