File - Noble: AP US History

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Chapter 32

The Politics of Boom and Bust

Election of 1920

Warren Harding

“soft”

Didn’t like to say no

Staff tied to corruption

Industrial Gains

Industrialists wanted government to stop restricting business

Progressive legislation struck down

Antitrust laws ignored

ICC run by men who favored management/business

Pro-Business Legislation

1920: railroads returned to private ownership

Lots of wage cuts

Veterans

1921: Veterans Bureau- operated hospitals and rehab for sick/injured

1919: American Legion- support/social group for veterans

1924: Adjusted Compensation Act

July 21st

Congress “officially” makes peace from WWI

Foreign Policy

Isolationism

Except: America signed treaty with Britain to share oil reserves in Middle East

Foreign Policy

Washington “Disarmament” Conference

The Five Power Naval Treaty

The Four Power Treaty

Kellogg-Briand Pact, 1928

Ratified by 62 nations

Outlawed war

EXCEPT defensive wars

Tariff

Businessmen didn’t want European products sold in America

Fordney-McCumber Tariff Law: raised from 27 to

35 %

Problem: Europe in debt, needs to sell goods or else they can’t pay back debt to US

Scandal- Harding

Veterans Scandal: $200 million federal funds stolen

Teapot Dome: Albert Fall accepts a bribe to allow oil companies to drill on federal land

Harding

Dies in 1923

Succeeded by “Silent” Calvin Coolidge

Coolidge

Shy

Boring speeches

Continued policies

Farmers

Machinery

Crop surpluses

Trade with other countries

Government doesn’t help

Election of 1924

Democrat party: John W. Davis

Republican: Calvin Coolidge

Progressive: Robert LaFollette

Progressive Party

Endorsed by Unions and farmers

Government ownership of railroads

Relief for farmers

Opposed monopolies

Calvin Coolidge wins

Foreign Policy

Isolationism

Except: Latin American and Caribbean

Loaned money to many struggling countries

Allies couldn't pay back war debt

Dawes Plan 1924

America would loan money to Germany

Germany would pay back war reparations

Allies would pay back America

Downturn in economy: US never got money

Election of 1928

Herbert Hoover (r):

Isolationism

Individualism

Free enterprise

Small government

Herbert’s First Moves

Tried to help farmers (unsuccessful)

Hawley-Smoot Tariff 1930: raised tariff to 60%

Deepens economic depression

Increased financial chaos in the world

5 Causes of the Great

Depression

1. Farmer overproduction of crops and o veruse of land

2. Uneven distribution of income

3. Unbalanced foreign trade

4. Overextended personal debts

5. Mechanized industrialization

4 indicators of depression

1. Housing starts were declining

2. Business Inventories were up

3. stock market was overvalued

4. people were buying on credit

• http://www.history.com/topics/greatdepression/videos/1929-stock-market-crash

October 29, 1929

“Black Tuesday”

By end of year, stockholders have lost $40 billion

Businesses/banks shut down

Leads to the Great Depression

Dustbowl

Agricultural crisis, 1930s

Hoover’s Response

Industry and self-dependence

Welfare of people not the government’s responsibility

Image of presidency

People’s Response to Hoover

“Hoovervilles”

Hoover flags

Hoover leather

Hoover wagons

Hoover blankets

Hoover

Plan:

Government would help: rrds, banks, creditors

Trickle down economics

$2.25 million dollars for public works

Vetoed “socialist” policies: Muscle Shoals Bill

Reconstruction Finance

Corporation

Lent money to banks, insurance companies, agricultural organizations, railroads, and state and local governments

“Bonus Army”

WWI veterans organize Bonus Expeditionary

Force (BEF)

March on DC, demand bonuses

Hoover sent in federal troops

Increased public disdain

Foreign Policy

1931: Japan invades Manchuria (China)

League of Nations unsuccessful

Stimson Doctrine: US would not recognize any territory acquired by force

Ignored by Japan

Latin America

Hoover tries to improve relationships

Pulls troops out of Haiti and Nicaragua

“Good Neighbor” Policy

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