1. Post-War United States of America

2.  1.) What caused the stock market to become unstable?  2.) This individual would initiate a plan to help the U.S.A recover after 1929:  3.) Please explain the main goals of the “New Deal”.

3.  An “ALLIED” Winner of WWI.  Has war debt paid.  Agrees to the KELLOG-BRIAND PACT of 1928 ◦ “Renounce war as an instrument of national policy.” ◦ Disarmament – Reduction of armed forces and weapons.  Unfortunately, the U.S.A, Great Britain, and France could not agree on set limits….so each just lessened amount of arms.

4.  America was the strongest country in the world. ◦ Solid industry and stable economy.  !!BAD SIGNS!!  Overproduction – Production of goods exceeds the demand for them.  Increased demand for foreign raw goods.  Higher wages = price of goods increases.  By late 1920’s disaster on horizon….

5.  Stock prices soar.  Investors buy stock on MARGIN. ◦ Purchase stock on credit -- “GHOST MONEY”  People on edge and prices begin to fall.  Brokers ask Investors to pay money for the stocks bought on margin. ◦ Most did not have the money to pay, so they must sell the stock  Stock Market CRASHES -- October 29, 1929  Fortunes lost, jobs lost, factories close.  By 1932, over 30 million unemployed.

6.  Period of economic crisis.  High unemployment ◦ 25% (1933) 9% (2010)  Homes lost  Suicide of Wall Street executives

7.  After President Herbert Hoover did little, a new President will step up to meet the crisis.  Franklin Delano Roosevelt  Franklin Delano Roosevelt.  Initiates a policy known as “THE NEW DEAL”.

8.  Financial relief for the unemployed.  Agricultural subsidies to support farmers and balance out supply.  New jobs created by government funded building projects.  Fixed taxation issues. Social Security Act to protect citizens unable or too old to work.  1935: Social Security Act to protect citizens unable or too old to work.

13.  Did not end the Depression ◦ World War II did (need for food and creation of arms/supplies).  Main Theme: Non-interventionist state → social/welfare state bigger  Role of government is bigger than ever.

14. RED SCARE  “RED SCARE” – 1920 Authorities round and prosecute foreign-born radicals or those who are suspected of harboring communist ideals.  United States passes laws to limit immigration of people from Europe.

15.  1.) What caused the stock market to become unstable?  2.) This individual would initiate a plan to help the U.S.A recover after 1929:  3.) Please explain the main goals of the “New Deal”.