Hy 104 Quiz 5 Prep! (PDF)

Quiz 5 Prep! The 20s: Politics and Economics - Beginning of spectator sports popularity (baseball, basketball, football) - Changing women’s roles (voting) - Increase in consumerism Election of 1920 - DEM: James Cox - E...

Quiz 5 Prep! The 20s: Politics and Economics - Beginning of spectator sports popularity (baseball, basketball, football) - Changing women’s roles (voting) - Increase in consumerism Election of 1920 - DEM: James Cox - Enacted workers comp, ballots in Ohio, favor of US joining the League of Nations. - If elected: resubmit treaty, try to make the US more active in world a airs. - GOP: Warren G. Harding - Worst voting record in the senate, liked the perks not the job, likable - Promised a “return to normalcy” Harding Administration - Scandalous politically and personally - Ohio Gang: improper money collection from WW1 American Metal Co. Sales. - Harry Daugherty - Charles Forbes: Pocketed money from the sales of medical supplies, kickbacks on land to build hospitals - Veteran bureau. - Albert Fall: secretary of interior - Teapot Dome A air: bribe on oil leases - Married Florence Hardings for the money, she pushed him to run - Had a relationship with Nan Britton, 30 year age gap, who would sneak by train to the white house at night. - Charles Evans: appointed as secretary of state - A Zeitgeist “spirit of the time”: thought WW1 could never happen again. - Kellogg Brand Pact: signed by 100 nations, outlawed wars like WW1 Japan’s Growth - Worries the US, calls the Washington Naval Conference - Reduce navy size (reduce war) - 4 Power treaty: respect possessions in paci c - 5 Power treaty: naval disarmament - USA (5), GB (5), Japan (3), Italy (1.5) - 9 Power treaty: respect the open door in China. - Harding passes prior to end of term. Calvin Coolidge - Polar opposite to harding - Didn’t drink, healthy marriage, quiet, in bed early - Nicknamed the “Silent Howe” - Won the election overwhelmingly, determined to x US economy. Coolidge Economy E orts - Wants to get the US economy going again, adjustments to peacetime production. - Wants to continue hardings reforms, business is business. - The US is good at buying and selling, no more government control. (Restriction, regulation) 1. Cut spending i. Made employees turn in simple items like pencils, no waste. 2. Cut Taxes i. During WW1 income tax was raised to pay for the war as it went ii. Debt caused the income tax to remain high, Coolidge cut it by 1/2 i. Get more money in consumers hands! - Economic e orts work! Consumerism Boost ff ff ff fi fi ff  - Consumerism boosts in the country, especially: Cars - Cars (Model T) - Henry Ford: paid his workers ve dollars a day, a lot of money! - Wanted workers to be able to buy the cars and drive them. - Allowed payments to be done with credit. - Radios - Programming, sports, news, music - Refrigerators, Washing machines, vacuum cleaners - These products have demand and are able to be a orded. - 1st time that the US has more urban than rural living. Roaring 20s - Roaring machines coming to life, industrial sector is booming in the US Election of 1928 - Expected Coolidge to run again, decided not to and chose Herbert Hoover to run. Herbert Hoover - Self man man, not rich, politically interesting. - Originally was a democrat, worked in food administration under Wilson. - Became a republican, secretary of commerce for Harding and Coolidge. - Won election overwhelmingly + inherits a booming economy. New York Stock Exchange - accumulation investment income in American Companies. - Money used by companies to pay sta - Can buy and sell stocks ($ invested in US Corp) - Dow Jones Industrial Average: 30 leading American corporations - Di erent segments of the economy (gas, food, technology..) - If these companies are doing well, the US economy is doing well. Bull (↑) and Bear (↓) Market - In 1928, the Dow Jones Average was 88. - This number tripped in one year, INSANE! - Raging Bull Market: allowed people to buy on margin (margin buying) - Credit system - Margin calls: you owe money for a stock because the value decreased. (Stock doesn’t cover the value of the loan) The Decline - 25% drop in two days, black Monday and black Tuesday. - Continues to drop til mid November then drifts upward. - 2 weeks of devastation because of the crash. - The stock market didn’t crash because of the great depression. - Stock Markey is an indicator of an unwell US economy. Causes of Great Depression 1. Poor Diversi cation in the US Economy 1. Economy was driven by industrial output. (Agriculture = disaster) 2. Farm prices crashed, farmers went to industrial. 1. Cant a ord consumer items driving the economy 2. Over reliance on durable goods 1. Those that could a ord it already bought it. Items that last long dont need replaced, dont need more. 3. Weak foreign demand 1. US was the faculty for the world after WW1, however other countries in Europe began industrializing. Didn’t rely on the US. - Demands for American goods began to decline. Americans Response to Hoover - Hoover at the time believed that the US always went through cycles ff ff fi ff fi ff ff  - Every 20 years, we will get through it. - Food becomes a BIG issue. - “Hoovervilles”: Makeshift homes, sheet metal, wood, closed factories. - Hoover wagons (cars being drug by horses) - Hoover blankets: Newspapers - Hoover was out of touch to most Americans.