Michael Quinones, NBCT

 Was president of the United States for only 2 years.  He succeeded President Wilson.  His stated goal was for the United States to Return to Normalcy [ to get back to normal ] after a very costly world war.  His openness and optimism was appreciated by the nation.  Unfortunately Harding was in very poor health unbeknownst to him.  He died in the middle of a conversation with his wife.  It was most likely a heart attack or stroke.

 Unfortunately before President Harding died several corruption scandals were uncovered that embarrassed him and the federal government.  The first was the Forbes Scandal when an army colonel was accused of selling scarce medical supplies from Veterans’ hospitals and keeping the cash.  The worst scandal was the Tea Pot Dome scandal which involved Albert Fall the Secretary of the Interior being bribed with $300,000 to allow American oil companies to drill in Wyoming at a U.S. Navy oil reserve.

 President of the United States for 7 years.  He finished Harding’s term then was re-elected.  He was known as a “friend to business” because of his Laissez Faire policies.  Many people because of his economic views the United States headed toward a reckless financial path.

 Hoover was elected president in He believed in Laissez-Faire economics [limited regulation].  Without strict regulation banks and investment houses lent money to people who could not repay loans.  Stock brokers [people who sell stocks] allowed investors to buy on margin [buy stocks now and pay for them later].  When stock dropped in value investors could not repay and banks went out of business. Thousands of people lost their life savings.  People move into shack towns called Hoovervilles.

 Prices of stocks started to plunge in value in October of  Bad loans that were not repaid and speculation [rumors] led to a furious sell off of stocks and the U.S. Stock dropped in value by more than half.  Most people lost their life savings. Many people committed suicide.

 Many U.S. businesses believed it was best to protect American markets buy having high tariffs [taxes on foreign imported goods].  As a result of corporate pressure the Hawley-Smoot Tariff raised the average tariff rate to the highest point in U.S. history.  In retaliation foreign countries raised their tariffs and as result American exports plunged and domestic companies suffered as did the U.S. economy. U.S. Senators Willis Hawley and Reed Smoot

 Millions of U.S. citizens pleaded with local and state governments for financial assistance.  Bread and soup lines streamed down city streets throughout the United States.  Local and state governments quickly ran out of funds to handle the crisis.  Finally in 1932 outgoing President Herbert Hoover signed the Emergency Relief and Construction Act which provided direct relief financially for citizens by creating public works jobs [usually construction] and emergency loans.

 Easy Credit -During the “roaring 20s” many banks and financial institutions gave credit and loans to people who were not really able to pay it back. These loans were very risky.  Overproduction -Many companies were manufacturing an over supply of goods that inevitably forced prices to plunge.  Installment Plan -People who bought goods on credit paid their loans in installments [separate payments over time ]. The problem with this was that people had no money to buy other goods. Therefore, businesses suffered and laid off workers.

 Hoovervilles -Towns where entire villages of shacks were built by people who lost their homes.  Soup Kitchens -Locations where poor, hungry people could receive free hot soup from churches and relief agencies.  Bread lines -Locations where poor, hungry people could receive bread that was often hard and stale. The lines were usually very long.

 Discharged World War I veterans were also suffering from the effects of the Great Depression.  They were promised cash bonuses by 1945 after WWI but they wanted them early.  In the summer of ,000 men [17,000 veterans] marched on Washington, D.C. and camped out until they received pay.  The protestors were forced to leave but given jobs in the C.C.C. and given early payments in 1936 by President Roosevelt.

 During the 1930s there were prolonged droughts that devastated farmers’ crops on the Midwest.  Farmers were unable to repay their loans and most of them had land foreclosed.  Farmers were forced to move elsewhere for better opportunities.  The suffering was described in John Steinbeck’s novel about the Dust Bowl the Grapes of Wrath.

 After his election as president of the United States in 1932 F.D.R. introduced a plan [legislative Agenda] to return the nation to prosperity called the New Deal.  President Franklin Roosevelt’s New Deal sought to repair the nation’s economy and image by using the Three Rs :  Relief  Recovery  Reform  All of F.D.R.’s programs from were intended to support his New Deal.

 F.D.R. needed to spend tax money to improve the lives of U.S. citizens.  When there was little money the U.S. had to borrow money in the form of bonds from citizens.  When a government spends more money then it takes in its called deficit spending.  There were also millions of elderly people who had their life savings wiped out by the Great Depression. The Social Security Act was passed in 1935 to provide modest pensions [monetary retirement payments] to people over 65 years of age.

Agricultural Adjustment Act- Farmers were encouraged to destroy their crops or simply not grow their crops to lower the supply thereby raising the market price. National Industrial Recovery Act- this law relaxed the regulations on businesses that were related to the Sherman Anti-Trust Act. The N.R.A. [National Recovery Administration] was told to post the Blue Eagle on their windows and doors. The federal government gave incentives to people who bought from companies who cooperated. National Labor Relations Act [Wagner Act] -this law gave the right to collectively bargain to unions. Fair Labor Standards Act -this law guaranteed a minimum wages of $.40 an hour, guaranteed overtime pay [time and a half], and most child labor.

 S.E.C. Security and Exchange Commission -fed agency created to monitor and prevent banks and brokerage houses from manipulating the stock markets.  C.C.C. Civilian Conservation Corps -fed agency created to provide jobs for men at a $1 per day, gave free room and board to combat the Great Depression.  P.W.A. Public Works Administration- fed agency that trained and hired men to build infrastructure such as roads, schools and bridges throughout the United States [the jobs created were called pick and shovel jobs ].

 F.D.I.C. Federal Deposit Insurance Corporation-fed agency created to guarantee the deposits [savings] of each bank account holder up to $100,000.  T.V.A. Tennessee Valley Authority-federally sponsored electric company that produced very low cost electricity for the Southeastern United States. Also provided were construction and service jobs for thousands of American workers.  W.P.A. Works Progress Administration-fed agency that employed unskilled workers who built parks and other public projects. Similar to the P.W.A.

 Huey P. Long -a governor and U.S senator from Louisiana from he was avowed advocate of the poor and disadvantaged. His policies such as the Share Our Wealth program sought to limit the wealth of the richest U.S. citizens with progressive income taxes in order to fund the standard of living for the poorest Americans.  Father Charles Coughlin [speech on Youtube] -was a Detroit area Catholic priest who criticized F.D.R.’s New Deal Programs as not going far enough to help the poor and that the president was too close to Wall Street bankers.speech on Youtube  Frances Perkins -the first female member of a president’s cabinet. As Secretary of Labor she championed the central New Deal programs such as the Minimum Wage, Social Security Act and Public Works Administration.

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