The Repulcian Party's response in the election of 1920 was to campaign for smaller goernment. The presidential candidate, Warren Harding, had "a return to normalcy" as his campaign motto, a controlling of government interference in the economy.
Calvin Coolidge, a Massachusetts governor, had gained recognition in facing down a Boston police strike. "There is no right to strike against the public safety by anybody, anywhere, any time," he had declared. His conservative stance earned him a spot on the ticket as vice-president.
Following the Republican victory, Harding's inagural address set an entirely different tone from that of the Wilson administration (and ceretaily from the administration of today).
Harding pushed through Congree the Budget and Accounting Act of 1923. Under this act, the president gained authority for the budget, to the point of being able to impound money after it was budgeted.