the politics of boom and bust
DESCRIPTION
The Politics of Boom and Bust. Chapter 32 AP. What is meant by the “Republican Decade”?. The Executive Branch was dominated by three Republican presidents Congress was Republican TR died in 1919 --- Progressive wing of the Republican party died with him. The Election of 1920. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/1.jpg)
The Politics of Boom and Bust
Chapter 32
AP
![Page 2: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/2.jpg)
What is meant by the “Republican Decade”?
• The Executive Branch was dominated by three Republican presidents
• Congress was Republican
• TR died in 1919 --- Progressive wing of the Republican party died with him
![Page 3: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/3.jpg)
The Election of 1920• Rep: Warren Harding - Ohio
• Dem: James Cox - Ohio
Harding Cox
–Electoral Vote: 404 127
–Popular Vote: 16 m 9 m–Percentage: 60 % 34%
![Page 4: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/4.jpg)
The Election of 1920• The reason Harding wins…
“I am not fit for this office and should never have been here.” … WGH
![Page 5: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/5.jpg)
The Election of 1920
• 1920 is the first presidential election in which women participate
![Page 6: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/6.jpg)
Who was Warren G. Harding?
• Senator from Ohio• Less than
“Presidential” leadership skills
• Unclear and vague• Promised a “return
to normalcy”
![Page 7: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/7.jpg)
“I cannot hope to be one of the great presidents, but perhaps I may be remembered as one of the best loved.”
- Harding
![Page 8: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/8.jpg)
Harding – Personal Conduct?
• Never committed a crime
• Gambled …
• Hypocrite…
• 1905 – 1920 Carrie Philips…
• 1919 Nan Britton…
![Page 10: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/10.jpg)
Harding’s Cabinet?
• Charles Evans Hughes – Sec. of State• Herbert Hoover – Sec. of Commerce• Andrew Mellon – Sec. of Treasury• Ohio Gang…
– Albert Fall – Sec. of Interior– Charles Forbes – Veterans Bureau– Harry M. Daugherty – Attorney General
![Page 11: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/11.jpg)
“John, I can’t make a …thing out of this tax problem. I listen to one side and they seem right, and then… I talk to the other side and they seem just as right… I know somewhere there is an economist who knows the truth, but I don’t know where to find him and haven’t the sense to know him and trust him when I find him…What a job!” - WGH
![Page 12: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/12.jpg)
Harding Scandals
“I have no problem with my enemies…But…my Gdmn friends…, they’re the ones that keep me walking the floors at night.” WGH
![Page 13: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/13.jpg)
Harding Scandals
• Charles Forbes …
• Thomas Miller…
• Harry Daugherty…
• Albert Fall – Teapot Dome Scandal …
![Page 14: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/14.jpg)
President and Mrs. Harding
![Page 15: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/15.jpg)
Harding’s Domestic Policy
• Fordney-McCumber Tariff (1922)…
• Reduction of taxes…–Less spending, less government,
less presidential power• Immigration Act of 1921…
![Page 16: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/16.jpg)
Harding’s Foreign Policy?“We seek no part in directing the destiny of the world” - Harding
• Isolationism
• Signed a Congressional joint resolution ending WWI
• Opposed U.S. membership in League
• Washington Naval Conference (1921)…
• Foreign Debt…
• Dawes Plan…
![Page 17: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/17.jpg)
•
![Page 18: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/18.jpg)
Harding’s Death
• Disillusioned and despondent over scandals• Took trip to Alaska and California• Died at the Palace Hotel in San Francisco in
1923• No autopsy• Doc Sawyer – Mrs. Harding’s doctor and
Surgeon General – diagnosed ptomaine poisoning – probably a stroke
![Page 19: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/19.jpg)
Calvin Coolidge
• Republican President
• Pro-business• Keep taxes down
and profits up• Give businesses
more credit to expand
• High tariffs on imports
![Page 20: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/20.jpg)
“…the chief business of the American people is business…The man who builds a factory builds a temple – the man who works there worships there.” --Calvin Coolidge
![Page 21: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/21.jpg)
“Silent Cal”
• “Four – fifths of all our troubles in this life would disappear if we would only sit down and keep still”
![Page 22: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/22.jpg)
The Coolidge Presidency
• Honest and respectable…
• Immigration Act of 1924…
• Federal Income Tax and “Trickle-down Economics”
• McNary-Haugen farm bill…
• Kellogg-Briand Pact 1928…
![Page 23: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/23.jpg)
Herbert Hoover – The Great Engineer
• Sec. of Commerce• Assist business
community• Associative state…• Bureau of
Standards..• Trade associations..• Regulatory
commissions…
![Page 24: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/24.jpg)
What was the nature of the “Bull Market”?
• Stock prices increased…
• Speculation…
• Market value…
• Dow Jones Industrial Average …
![Page 25: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/25.jpg)
What weakness was developing in the market?
• 4 million Americans invested (3%)
• Margin accounts…
• Investment trusts…
• Corporations and banks ...
• Dow increased from 191 to 381 in 5 months in 1929
![Page 26: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/26.jpg)
What was the nature of the Crash of 1929?
• Oct. 23 – Dow lost 21 points in 1 hour
• Oct. 28 – 38 points lost (13%)
• Oct. 29 – Black Tuesday
– 16.4 million shares sold
– Over 1 million shares – no buyers
– Brokers called in margin accounts
• Nov. - $30 billion gone
![Page 27: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/27.jpg)
![Page 28: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/28.jpg)
The floor of the New York Stock Exchange – Oct. 1929
![Page 29: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/29.jpg)
![Page 30: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/30.jpg)
Panic on Wall Street –October, 1929
![Page 31: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/31.jpg)
“The fundamental business of the country…is on a sound and prosperous basis.” - Hoover
![Page 32: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/32.jpg)
What were the underlying causes of the Depression?
• Overproduction – underconsumption…
• Farming…
• Unequal distribution of income…
• Stock market crash…
• Bank failures…
• Tariff and foreign debt policies…
![Page 33: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/33.jpg)
Family incomes 1929?
• 2.3% over $10,000
• 8% over $5,000
• 71% less than $2,500
• 60% less than $2,000
• Over 42% less than $1,500
• 21% less than $1,000
• Ave. farm income $962
![Page 34: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/34.jpg)
What was the effect of the market crash?
• Undermined confidence• Production decreased• Workers laid off• Lay offs led to further decline in
spending• More cut-backs• More lay-offs
![Page 35: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/35.jpg)
![Page 36: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/36.jpg)
![Page 37: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/37.jpg)
Unemployed in Chicago
![Page 38: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/38.jpg)
Why did banks close?
• Banks had loaned money to speculators
• People defaulted on their loans
• Depositors began to withdraw funds
• 1930-1933 – 9,000 banks closed
• Millions in deposits lost
• Nation’s money supply fell by 1/3
• Decline in purchasing power
![Page 39: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/39.jpg)
“Run” on the bank
![Page 40: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/40.jpg)
How does the Depression become world wide?
• Europe – war debts…
• Germany – reparations…
• 1930 Hawley Smoot Tariff – highest protective tariff
– Europe could not sell to the U.S.
– Set up tariffs against U.S. products
– We could not sell to Europe
– International trade dropped by 40%
![Page 41: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/41.jpg)
What is the human toll of the Depression?
• Farm families lost farms
• Bank closing denied people savings to fall back on when they were unemployed
• Unemployment in 1932:
– Cleveland 50%
– Akron 60%
– Toledo 80%
• Psychological…
![Page 42: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/42.jpg)
What was the impact of the Depression on people’s lives?
• Poor diet
• Poor medical and health care
• Delayed lives
• Families split up
• Schools closed (no taxes)
• Suicide rate up 30%
![Page 43: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/43.jpg)
Who helped the unemployed?
• Existing relief systems inadequate
• Private charities….
• State governments…
• Government officials…
• Soup kitchens …
• Hoovervilles…
• Riding the rails…
![Page 44: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/44.jpg)
Hoovervilles
![Page 45: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/45.jpg)
![Page 46: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/46.jpg)
![Page 47: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/47.jpg)
Bread Lines
![Page 48: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/48.jpg)
![Page 49: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/49.jpg)
What was the condition of rural American?
• Farm incomes down 60%• 1/3 of all farmers lost their land• Dust Bowl ….
![Page 50: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/50.jpg)
What was Hoover’s response to the depression?
• Sec. of Treasury Mellon – “wait it out”
• Hoover
– commitment to localism and private initiative
–Solutions outside of government
–Summoned business leaders to Washington…
![Page 51: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/51.jpg)
–Called for state and local governments to create public works
–1930 President’s Committee for Unemployment and President’s Organization for Unemployment Relief…
![Page 52: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/52.jpg)
Hoover’s response?
• National Credit Corporation…
• Crisis worsened
• Election of 1930…
• Unemployment…
![Page 53: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/53.jpg)
Hoover Dam – Public Works
![Page 54: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/54.jpg)
What was the Reconstruction Finance corporation?
• $2 billion in loans to banks, insurance companies, and railroads
• Public upset…
• Later: $2 billion to state and local governments for job creating public works – only $30 million allocated
• Hoover: against this – said it would open the door to socialism and collectivism
![Page 55: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/55.jpg)
Nature of Protests?
• 1932 – mood desperate
• Hunger March
– communist organizers led march against Ford
– 4 killed and 50 wounded
![Page 56: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/56.jpg)
How did farmers respond to falling prices?
• Farms were foreclosed
• Burned crops – corn and wheat
• Spilled milk
• “Farmers Holiday”
• Blocked roads – prevent food from getting to market
• Used force to try to prevent foreclosures
![Page 57: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/57.jpg)
What was the Bonus Army?
• 10,000-20,000 unemployed WWI veterans
• Patman Bill – government should pay a bonus to WWI veterans that was due in 1945
• House of Rep. approved/Senate voted down
• Hoover ordered Gen. Douglas McArthur to disperse the Bonus Army
![Page 58: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/58.jpg)
Bonus Army Camp
![Page 59: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/59.jpg)
![Page 60: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/60.jpg)
Bonus Army at “Anacostia Flats”
![Page 61: The Politics of Boom and Bust](https://reader035.vdocuments.us/reader035/viewer/2022070417/568154ee550346895dc2e3ff/html5/thumbnails/61.jpg)