Objective 9.01 Elaborate on the cycle of economic boom and bust in the 1920’s and 1930’s.

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Presentation transcript:

Objective 9.01 Elaborate on the cycle of economic boom and bust in the 1920’s and 1930’s.

Return to Normalcy Warren G. Harding, election campaign slogan, return to a more normal time after WWI

Laissez-faire Government Hands Off, Government does not mess with the economy or business

Teapot Dome Scandal Albert Fall, Scandal over oil found on government property

Albert Fall Secretary of the Interior under Warren G. Harding, caught in the Teapot Dome Scandal

Speculation Buying high risk stocks in order to gain quick profits

Buying on the Margin Borrowing money to buy stock

Mechanization Replacing people with machinery in factories

Black Tuesday October 29th, 1929; Stock Market Falls signaling the beginning of the Great Depression

Hawley-Smoot Tariff One of the highest Tariffs in American History, contributed to the Great Depression, caused Europe not to purchase American surplus goods, purpose was to encourage Americans to buy American made products

Rugged Individualism Herbert Hoover’s approach to the Great Depression, volunteer cooperation, patience that the business cycle would turn around

Direct Relief Direct cash payment from the government to the people