Causes of the Great Causes of the Great Depression and the Great Depression and the Great Depression (Chapter 22)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”Return to Normalcy”

_______________________________________________(Republican) _________(Republican) wins 1920 electionwins 1920 election

Conservative Post-War Conservative Post-War EraEra

Political DevelopmentsPolitical Developments

““_________________________”: Warren _________________________”: Warren HardingHarding

First election (1920) where women had the First election (1920) where women had the right to vote ______ Amendment!!right to vote ______ Amendment!!

Harding and Coolidge win by landslideHarding and Coolidge win by landslide

Normalcy in Government

-1920 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 FaireLaissez Faire

““_______________”_______________” Gov’t should leave Gov’t should leave

business alonebusiness 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 ScandalTeapot Dome Scandal

Albert B. Fall: Sec. of Albert B. Fall: Sec. of InteriorInterior

Convicted of BriberyConvicted of Bribery Leased Gov’t Oil Lands Leased Gov’t Oil Lands

to make $$$$to make $$$$

HardingHarding

Sought to ______ taxes for the wealthySought to ______ taxes for the wealthy ______________ Tax Plan______________ Tax Plan

Reduce gov’t spending to protect American IndustryReduce gov’t spending to protect American Industry Harding never wanted to be presidentHarding never wanted to be president Died three years into term, avoiding congressional Died three years into term, avoiding congressional

investigations into the Teapot Dome Scandalinvestigations into the Teapot Dome Scandal _____________convicted and sent to prison for bribery_____________convicted and sent to prison for bribery Close friend Jesse Smith committed SuicideClose 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 CoolidgeCalvin Coolidge

Former gov. of Mass.Former gov. of Mass. ________________policies________________policies Supported Big ____________Supported Big ____________ Business of America is BusinessBusiness of America is Business Little Support for ___________Little Support for ___________ Vetoed the McNary-Haugen Bill that would Vetoed the McNary-Haugen Bill that would

have provided for gov’t ___________ of cropshave provided for gov’t ___________ of crops

Election of 1928

-________________

“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 _________________

-______________________, 1930

-everything became a chain reaction

Hawley-Smoot Tariff, 1930Hawley-Smoot Tariff, 1930

Raised U.S. tariffs on Raised U.S. tariffs on over 20,000 imported over 20,000 imported goods to record levelsgoods to record levels

Led to Great Depression Led to Great Depression

Speculation Speculation

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

Buying on MarginBuying on Margin

Buying stocks with Buying stocks with __________________ __________________ moneymoney

DangerousDangerous If stocks lose value then If stocks lose value then

you ________ you ________ everything!everything!

Easy CreditEasy CreditInstallment PlanInstallment Plan

““Buy now pay later”Buy now pay later” ___________ factor in ___________ factor in

Great DepressionGreat Depression

OverproductionOverproduction

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

““Black Tuesday”Black Tuesday”

Oct. 29, 1929Oct. 29, 1929 ____________________________________ Beginning of Great Beginning of Great

DepressionDepression CausesCauses

OverproductionOverproduction UnderconsumptionUnderconsumption Buying on MarginBuying on Margin Unequal distribution of Unequal distribution of

wealthwealth

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 ReliefDirect Relief

Providing aid to Providing aid to families who had lost families who had lost their homes and jobstheir homes and jobs

25% unemployment25% unemployment Pres. Hoover Pres. Hoover

__________ Direct __________ Direct ReliefRelief

Said: people should be Said: people should be “____________ “____________ individuals”individuals”

HoovervillesHoovervilles

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

Soup Kitchens/BreadlinesSoup Kitchens/Breadlines

Form of Form of __________________________

Feeding the poor and Feeding the poor and unemployedunemployed

Election of 1932-______________________

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 months

-Banking system was in a crisis