Causes of the Great Depression and the Great Depression (Chapter 22)

Standard of Living -”Business of America is ____________” –Calvin Coolidge -effects of the automobile ___________to travel -urban sprawl -airlines develop -electricity lights the whole nation alternating current (Tesla) -growth of the _______ industry

Prosperity -growth of ___________ industry -productivity increases -buying on the ______________increases consumption -Ford and Prosperity - _______________production -workers as consumers -$5 day plan

“Return to Normalcy” ___________________ _________(Republican) wins 1920 election ___________________ _________(Republican) wins 1920 election Conservative Post-War Era Conservative Post-War Era

Political Developments “_________________________”: Warren Harding “_________________________”: Warren Harding First election (1920) where women had the right to vote ______ Amendment!! First election (1920) where women had the right to vote ______ Amendment!! Harding and Coolidge win by landslide Harding and Coolidge win by landslide

Normalcy in Government election of Warren G. Harding and the simpler days before the war -Isolationist Policies -________________ Conferences proposed disarmament -________________ Treaty, 1929 outlawed war -New high ______ returned U.S. to isolationist position; hurt farmers -______________ policies -discriminatory quota system established -National Origins Act, 1921

Laissez Faire “_______________” “_______________” Gov’t should leave business alone Gov’t should leave business alone

Harding and Coolidge -Prosperity returns to the United States -Harding made some good and bad appointment choices Herbert Hoover ___________ -Teapot Dome Scandal gov’t owned oil rich lands leased out to private oil companies for far less than their value -Harding and administration are embarrassed -Harding dies in Office and Calvin Coolidge replaces him and wins re- election “Keep cool with Coolidge” – “Do Nothing Cal”

Harding and Coolidge -Prosperity returns to the United States -Harding made some good and bad appointment choices Herbert Hoover Ohio Gang -___________ Dome Scandal gov’t owned oil rich lands leased out to private oil companies for far less than their value -Harding and administration are embarrassed -Harding _______ in Office and Calvin Coolidge replaces him and wins re- election “Keep Cool with Coolidge” – “Do Nothing Cal”

Teapot Dome Scandal Albert B. Fall: Sec. of Interior Albert B. Fall: Sec. of Interior Convicted of Bribery Convicted of Bribery Leased Gov’t Oil Lands to make $$$$ Leased Gov’t Oil Lands to make $$$$

Harding Sought to ______ taxes for the wealthy Sought to ______ taxes for the wealthy ______________ Tax Plan ______________ Tax Plan Reduce gov’t spending to protect American Industry Reduce gov’t spending to protect American Industry Harding never wanted to be president Harding never wanted to be president Died three years into term, avoiding congressional investigations into the Teapot Dome Scandal Died three years into term, avoiding congressional investigations into the Teapot Dome Scandal _____________convicted and sent to prison for bribery _____________convicted and sent to prison for bribery Close friend Jesse Smith committed Suicide Close friend Jesse Smith committed Suicide

Harding and Coolidge -Prosperity returns to the United States -Harding made some good and bad appointment choices Herbert Hoover Ohio Gang -Teapot Dome Scandal gov’t owned oil rich lands leased out to private oil companies for far less than their value -Harding and administration are embarrassed -Harding dies in Office and Calvin Coolidge replaces him and wins re- election “_________________” – “Do Nothing Cal”

Calvin Coolidge Former gov. of Mass. Former gov. of Mass. ________________policies ________________policies Supported Big ____________ Supported Big ____________ Business of America is Business Business of America is Business Little Support for ___________ Little Support for ___________ Vetoed the McNary-Haugen Bill that would have provided for gov’t ___________ of crops Vetoed the McNary-Haugen Bill that would have provided for gov’t ___________ of crops

Election of ________________ “Two cars in every garage” -20’s marked a reign of prosperity -Hoover predicts the end of poverty

Stock Market Crash -Warning Signs -____________ -Buying on __________ -Stock prices were __________ -Oct 1929 prices begin to fall -Oct 29, 1929 _____________Great Crash

Causes of Depression -_________________ of goods -Too much available _________ -less consumption of goods -farm _______/WWI -high ____________ -no banking _________________ -______________________, everything became a chain reaction

Hawley-Smoot Tariff, 1930 Raised U.S. tariffs on over 20,000 imported goods to record levels Raised U.S. tariffs on over 20,000 imported goods to record levels Led to Great Depression Led to Great Depression

Speculation Buying stocks (low) with the hopes of selling the for a ________ (high) Buying stocks (low) with the hopes of selling the for a ________ (high)

Buying on Margin Buying stocks with __________________ money Buying stocks with __________________ money Dangerous Dangerous If stocks lose value then you ________ everything! If stocks lose value then you ________ everything!

Easy Credit Installment Plan “Buy now pay later” “Buy now pay later” ___________ factor in Great Depression ___________ factor in Great Depression

Overproduction US factories producing more than we can ______________ or purchase US factories producing more than we can ______________ or purchase

“Black Tuesday” Oct. 29, 1929 Oct. 29, 1929 __________________ __________________ Beginning of Great Depression Beginning of Great Depression Causes Causes Overproduction Overproduction Underconsumption Underconsumption Buying on Margin Buying on Margin Unequal distribution of wealth Unequal distribution of wealth

Hard Times Hit Home -Rural areas ________________ of farms, food supply, Dust Bowl -Cities shantytowns, soup kitchens, breadlines -Family Life men on the move, hardships of women, health of children, -Social effects more suicide, mental illness, dreams forsaken, ethics, hardwork

Hoover’s Resolve -Rugged Individualism -created gov’t _________ to help business recover -gave no __________________to the people -”Two families in every garage” -______________________ -____________March on Washington; baby dies from tear gas

Direct Relief Providing aid to families who had lost their homes and jobs Providing aid to families who had lost their homes and jobs 25% unemployment 25% unemployment Pres. Hoover __________ Direct Relief Pres. Hoover __________ Direct Relief Said: people should be “____________ individuals” Said: people should be “____________ individuals”

Hoovervilles “Shantytowns” “Shantytowns” _________________ living in boxes or cars _________________ living in boxes or cars Situation blamed on Pres. Hoover Situation blamed on Pres. Hoover

Soup Kitchens/Breadlines Form of _____________ Form of _____________ Feeding the poor and unemployed Feeding the poor and unemployed

Election of ______________________ governor of NY -Pledged a _____________for the people Help for the common man -Democrats wins great majority in Congress -Hoover remain a lame duck for several monthslame duck -Banking system was in a crisis