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Return to Normalcy
*Return to "Big business"
*In addition to its pro-business stance, Harding administration was known primarily for his corruption exposed fully after Harding's death in office in 1923
*How it was after WW1 b4 the Great Depression, the good times -
1920's
Buying on Margin: Margin means buying securities such as stocks, by using funds you borrow from your broker(person who buys&sells goods 4 others)
*Disposable Income:Income remaining after deduction of taxes&other mandatory charges
Bank Run: Sudden w/drawal of deposits of Just #1 bank
*Bank Failure: Large #'s of anxious people w/draw their deposits in cash forcing banks to liquidate loans & often leading to bank failure -
Stock Market Crash
*People could not sell their shares fast enough
*Top bankers met that Friday& bought stocks above current market prices to try to stop the rapid decline in prices
*This action by bankers only delayed the collapse by a few days
*Oct.29(Black Tuesday) Market crashes -
Great Depression
*When panicked sellers traded nearly 16 million shares on the New York stock exchange
*In 1990, 15% was the lowest unemployment rate
*People had fought for their daily survival. Banks failed and many people were out of work
*The money supply growth cause by huge international gold influence was a crucial source of the recovery of the U.S economy
*People were hungry and went homeless -
Immigrants During the Depression
*With less demand for workers during the depression, White American farmers sought after jobs filled by Mexican Immigrants
*Public hostility grew towards Mexicans which made it difficult for them to enter the U.S
*President Hoover authorized the Mexican Repatriation Act, which sent Mexicans back to Mexico due to lack of jobs -
William Randolph Hearst
*He was a leading supporter of Franklin Roosevelt in 1932, But then broke with FDR & Became his most prominent enemy
*Franklin D. Roosevelt's New Deal gave way however to vigorous opposition to the President;s policies on taxes, trust, & harbor & hearst became stridently conservative -
William Randolph Hearst
*Hearst's reputation suffered in the 1930 as his political views changed in 1932 he was a major supporter of FDR his newspapers throughout 1933
*Hearst broke with FDR in the spring of 1935 when President vetoed the pat man bonus bill -
The Gold Standard
*Gold and silver were traded
*Use of the gold standard came to an end in 1933 when president Roosevelt issued an executive order outlawing the ship to gold, but Roosevelt wanted people to rely on paper money (flat money)
*To expand to money supply&stimulate activity -
Agricultural Adjustment Act/New Deal
*The agricultural act was created in 1933 to reduce crop surplus and therefore effectively raised value of crops
*To producers who curtailed the output of crops and livestock
*The AAA also paid farmers to not grow crops
*The Act came to be Rivelts's recovery legislation -
21st Amendment
*In 1933, the 21st amendment to the constitution was passed and ratified ending national prohibition
*After the repeal of the 18th amendment, some states continued prohibition by maintaining statewide temperance laws -
20th Amendment
Causes: officials called "lame ducks" would take advantage and pass laws
*What did it do illegally: It cut off all chances to pass or change laws unlawfully changed the beginning and ending of terms of the elected federal officials
*Effects: It stopped "lame duck" session -
Tennessee Valley Authority
*Built a government owned dams along the river
*Control floods and produced electricity
*Some feared it as a form of socialism -
Federal Deposit Insurance Corporation
*The FDIC provided federal insurance for individual bank accounts of up to $5,000, reassuring of bank that their money was safe
*Congress and the President also worked to regulate the stock market, in which people head lost faith because of the crash of 1929
*The FDIC was part of Roosevelt's New Deal steal the 3 r's of relief, recovery, reform -
Period: to
New Deal
*Roosevelt blamed the bankers selfishness&finances for current crisis
*Roosevelt through legislation which is hard in less critical times
*All the important bills submitted in theses 1st 100days Roosevelt explained these -
Huey Long "Share Our Wealth"
*Was a Democratic Governor of Louisiana. Opposed the New Deal bc he believed Roosevelt's plan didnt help people living in poverty after the Great Depression
*His Share Our Wealth Plan was meant to take money from the wealthy & redistribute it to the poor
*Assassinated Sept. 10, 1935 -
SEC/ New Deal
*The securities and Exchange Commissions Act was created to review over the stock markets, prevent fraud and guard against other stock markets collapsing
*The Long term effect of the passage is that they maintain efficient markets and protect investors
*This gives investors common sense to buy in or not
*This is Roosevelt's Reform Legislation -
Reform of the New Deal
*Social security was probably the most important measure of the new deal. It provided workers with unemployment insurance, old age and insurance if they died early
*Workers and their employers each paid New Contributing to fund these benefits in part of Roosevelt -
Migrant Mother
*She focused her photography career on destitute migrant workers, children, & mothers
*Her career helped raise funds by federal agencies. It also helped draw attention to the desperate conditions in rural America and helped to underscore the need for direct relief -
Judicial Procedure Reform Bill
*He proposed a plan to allow the president to add a new appointment to the supreme court for each justice over 70 years old
*The plan would have given Roosevelt the right to appoint six justices, giving him control over the court
*His court packing scheme was widely viewed as an attempt to upset the traditional separation of powers
*Roosevelt's new deal, the power of the federal government moved beyond the regulatory role it had under the progressives -
Judicial Procedure Reform Bill
*Roosevelt proposed a plan to allow the President to add a new appointment to the Supreme Court for each Justice over 70% years old
*The plan would have given Roosevelt the the right to appoint six justices, giving him control over the court
*His "Court Packing Scheme" was widely viewed as an attempt to upset the tradition separation of powers
*Roosevelt's New Deal, the power of the federal agreement moved beyond the regulatory role it had under the progressions -
AAA(Agricultural Adjustment Act)
*Gave farmers government payment, to grow farmer crops
*Smaller supply of crops would increase demand for those crops, this would help farmers earn money
*His purpose was to improve&preserve national soil resources. Also prevent it from eroding
*Long term effect was to help keep the pricing of crops stabilized -
Robert A. Taft
*Taft was elected to the U.S Senate in 1938
*He opposed and denounced FDR's New Deal, said that it had socialist trends
*Taft's plan called for economy in government, a balanced budget and less centralization of power in the National Capital -
Dust Bowl
*Drought is a part of a weather cycle, nationally occurring of the Great Plains
*Farmers from TX to ND used tractors to break up the grasslands and plant millions of acres of new farmland
*Dust traveled hundreds of miles. plagued by dust storms and evictions, thousands of farmers and sharecroppers left their land behind
*By the end of the 1930's hundreds of thousands of farm families had migrated to Cali. and other Pacific Coast States -
Grapes of Warth
Author: John Steinbeck
*Okies: were natives farms in Oklahoma forced to move due to drought and farm foreclosures in the 1930's to California using route 66 to seek better jobs
*Migrant Hopess vs. Reality people came from all around the US with hopes of a better life and better jobs, but only came to find even more poverty or if not already poor the became poor