Harding, Coolidge And Hoover Flashcards

1
Q

Why was Harding elected

A

Failure of Democrats - LON, Wilson, Republicans United

Strengths of republicans.

  • stalwart division over
  • Harding= normalcy
  • women enfranchisement
  • prohibition influenced - republicans behind, dem split

WW1

  • 100,000 men lost
  • economic recession
  • race riots
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2
Q

Explain Harding vs Coolidge

A

Coolidge - hard on strikes eg Boston

Harding - return to normalcy, anti immigration, WASPS , America first

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3
Q

Why did politics become less progressive

A

Redscare - fear of communism - inc support for KKK = rise in communism —> inward thinking

Democrat party hurt by support for LON

Post WW1 politics more conservative

Laissez faire - boom, overturn of attempts to regulate business

Congress lowered income tax

Dem split over prohibition

Progressives vote for La Follette but defeated 1924

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4
Q

Did progressivism continue under Harding

A

Shepherd Towner Act

Among 60 social welfare bills - many unsuccessful

Resulted in decrease in infant mortality

Women’s group = most successful progressive element of US society during period
Women’s groups often % on acc of race and class

Vocational education act revitalised 1920

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5
Q

Explain the teapot dome scandal

A

Harding gave important jobs to friends who became known as Ohio gang

Albert Fall - Secretary of Interior- took over $300,000 in loans and bribed to allow a company to drill for oil —-> it was not his to sell

Teapot dome was gov owned land

Fall made $100,000 out of agreement

Took 6 years to find evidence
Fall jailed for year and fined $100,000
Symbol of 1920 corruption

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6
Q

Explain scandals under Harding

(Apart from teapot dome)b

A

4 and a half years after death - 2 cabinet members forced to resign and indicted for crimes ranging from defrauding gov to bribery to corruption

Forbes (Harding’s closest friend) went prison for accepting loans from a construction firm bidding government contracts and selling medical supplies to friendly purchaser at low price

Jess Smith - conspired to recover securities confiscated from Germans during war
Jury failed to convict him

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7
Q

Economic strengths during Harding’s administration

A

Fordney McCumber tariff good for BB 1922

Agricultural credits 1923

  • attempts to deliver recession in farm eco
  • but did not address overproduction

Copper Volstead 1922

  • gave ‘associations’ of persons producing agricultural products certain exemptions from anti trust laws
  • sometimes called the magma carta corporation
  • more long term than short term
  • federal trade commission good for BB
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8
Q

Economic weakness of Harding

A

Gov reduced taxes 1921 (on corporations and wealthy individuals)
The following year, tariffs raised making imported goods more expensive

Fordney McCumber Act 1922- one of highest tariffs - not good for farmers

The federal trade commission - formed to monitor business, but co-operates with them rather than regulate

Supreme Court protected BB from anti-trust legislations and ruled against labour unions in attempt to organise strikes

Uneven distribution of wealth
Red scare - Harding more conservative
Made cuts to gov spending

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9
Q

Social strengths during Harding administration

A

1920- Supreme Court rules against use of evidence seized illegally by raids post WW1

During 1920- strong reaction against violation of people’s rights and red scare faded away

Shepard Towner Maternity Aid
Provided federal aid to states to encourage them to built infant and maternity health centre

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10
Q

Racial strength during Harding administration

A

Harding spoke out against segregation in Birmingham Alabama

However some cynics day he did this for electoral support of northern African Americans

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11
Q

Racial weakness during Harding’s administration.

A

Pressure for reform obv w immigration. WCTU and ASL = largest campaign groups
Wartime conditions acted as a catylist to speed up support
It was widely ignored in densely populated urban areas
It achieved significant support in rural western and southern regions
Harding and his cronies widely ignored

Anti/lynching bill introduced and passed by House but blocked by senate

1921 Emergency Quota Act - passed to limit immigration into the US. Number of immigrants was limited to 3% of each national group

Nativism . KKK revises

Uncertainty of post war and fears of radicalism derived from Russian revolution 1917 led to attempt to stop immigration

Literacy tests and further legislations arrived under Coolidge

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12
Q

Strength of foreign policy during Harding

A

USA reject LON 1920

Key negotiated in Washington Naval Conference aiming to power acts to reduce battleship building to avoid dangers of arms racing

Series of disputed w Mexico over its failure to protect American citizens
Oil companies backed government

A compromise agreement made 1923- but 2 years later it was met w a tougher line from Mexico

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13
Q

What action had been taken against immigration up until 1920s

A

50 cent head count Ellis island

Mexican checks- if failed - sent back

Prohibition

1882 Chinese exclusion act - as well as railroads done being made - chinease were employed on railroads

1917- literacy test on immigrants

1915 rise of KKK and lynching prior to WW1

Boston police strike

Espionage and sedition act

Red scare

Palmer raids

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14
Q

Compare 1921 and 1924 immigration acts

A

The Emergency Quota Act

  1. The national origins act 1924
    Reduced maximum number of immigrants to 150,000 per year and cut quota to 2% of 198 pop US

Aimed at restrict southern and Eastern European immigrants

Also prohibited immigration from Asia and angered Chinese and Japanese already in U.s

More desperate and racist

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15
Q

Economic criticism of Coolidge

A

Failed to give ley way to countries facing economic difficulties after war

Failed to address worsening economic plight of farmers

‘Do nothing’ President - flavoured free market economy

His economic policy led to Great Depression —> world war 1, uneven wealth etc

Did nothing to Avert Depression

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16
Q

Social criticism of Coolidge

A

Criticism for condemning KKK when march down Pennsylvania Avenue in Washington 1925

Signed 1924 immigration act

Spoke out against lynching, child labour, low wages for women - but did nothing about it

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17
Q

Criticisms of Coolidge as a person

A

Lack of public speaking and poor work ethic was dissimilar to FDR

Childish - made bodyguards think he was kidnapped and slept in afternoons

Didn’t speak much. Held breakfast meetings in congress to control it but did not speak

Received his appointees reports in silence and often sent them away w out a word

1924 Indian citizenship act

Appointed council - look into teadome scandal

Flappers generation

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18
Q

Economic success of Coolidge

A

Largest 200 companies owned 20% nation’s wealth

1928 US richest country world

‘Coolidge prosperity’- declining unemployment, rising wages

Massive growth in consumer goods

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19
Q

Coolidge foreign policy success

A

Rejected LON

Implicit in Dawes Plan - helped Ger out of hyperinflation and Kellon Brand Pact - tried to endure not another way

Sent Hoover —> rescue, relief and reconstruction after Mississippi River Flood 1927

1925 -> chinease nationalism led to attacks on US in shanghai and call for unfair provileges for foreigners in China
Coolidge gave what asked

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20
Q

Did silent cal deserve his name

A

Yes - large extent

Presidency - massive economic growth - unregulated - did nothing

Unprofessional

Spoke out against lynching child labour and appointed AA to federal office - did nothing for child labour. Just spoke on issue

FP- silent - X LON X eco other

Successful in FP with Chiba

X like Roosevelt

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21
Q

Why was their an economic boom in US 1920

A

Laissez faire

Assembly line

Credit

Knowledge

Position of USA

A

New consumer goods

Tariffs

Share confidence

WW1 
Republicans policies 
Tech policies 
Car industry 
Media 
Confidence
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22
Q

1921-1924 wages

A

Rose 22% per person

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23
Q

Confidence and stock market

1920 boom

A

Value of stocks and shares rose steadily throughout decade. Rose dramatically 1928+29

Buying and seeking of shares grew substantially until it was common pccurance for working people to be involved

Most companies shares rise so people prepared to make risk

Even if not enough - deposit and borrow to pay rest

Number of share - $451- 1926

25m Involved

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24
Q

Technological changes

1920 boom

A

New advances in manufacturing and technology

Boom enhanced by abundant supply of coal +/- oil

US steel - so big - could dictate prices

Advances in tech - age of steel and electricity powered homes not coal

Radios, vacuum cleaners - with electricity

Henry Ford - Assembly Line - lots produced and fast and cheap. —> other industry - rubber, glass, paint. Required for new roads, petrol stations and moods

Boom in chemicals + movie industries

New business methods - significant growth in corporations

1929- largest 200 corporations held 20% nation wealth - dominated various ways. Operated cartels. Gov turned blind eye.

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25
Media and advertisement 1920 boom
1929- over 25,000 cinemas opened + average of 100 million US wheat Movies became one of most important advertising mediums of 1920s 1920s- flapper —> wanted glamorous clothes Mass advertising - 70% of radios 1920s brought on credit Radios = +$1 million in advertising time to Democrat and Republican
26
Car industry 1920s boom
Hire purchase - people bought goods even if X cash to pay for immediately End of 1920s a 4.5 million cars on road - largest industry in world 1913- Assembly lime 1918- ford factory - car every 3 min 1920- every 10 seconds People found work boring 1914 doubled wage $5 a day Workers raced to work for him Reduced working day to 7 hours Price decreased 1914= $850 1926= $295 90% petrol and rubber consumed by car industry Building of motels, highways and towns 1921 highway act - gov build roads. 10,000 miles 1 year
27
World war 1 | 1920s consumer boom
USA entered WW1 1917 No damage to repair - no war on US soil US made a lot of money by selling weapons and arms to France and Britain While European countries were busy fighting, USA took over many of their markets USA’s chemical industry replaced Germany industry as world leader producing explosives, fertilisers, dyes and plastics According to WW1/ foreign debts commission- Bri, France and Italy owed US $22 billion and interest
28
USA wealth 1920s Coolidge
The USA was rich in raw materials such as steel and had much fertile land It was the world’s leading industrial nation It’s popular with migrants - hardworking and ambitious The early 1900s move from rural and agricultural to industrial
29
New industries in the 1920s Coolidge
The total population of American industry increased 50% during 1910s The boom was fuelled by a demand for ‘new’ consumer goods For example radios etc Most significant was the growth in the motor industry
30
Rising wages and stable prices 1920s Coolidge
People could afford to buy new goods because income rose around 25% during 1920s - whilst prices remained the same or fell A reason for this was the introduction of the Assmebly Line - Ford —-> manufactured could increase production + make goods cheaper
31
Gov policies 1920s Coolidge
Throughout 1920s, control of the economy were in the hands of Andrew Mellon He believed in laissez faire His policy was to give BB what it wanted. Businessmen believed of taxes were low, people and companies would have more money to invest The gov introduced high tariffs in foreign goods coming to America The Fordney-McCumber Tariff 1922- raised tariffs higher than ever before - protected US industry
32
Hire purchase 1920s Coolidge
The consumer boom was encouraged by the easy availability of credit Pioneered by car companies, hire purchase enabled customers to buy the goods they wanted with a small deposit, and then pay the rest in weekly, monthly instalments 6/10 cars bought this way Another marketing tool was the Mail Order Catalogue eg Roebuck Catalogue
33
1920s weak unions Coolidge
The Republican government like businessmen - against trade unions Employers allowed to use violence to break strikes and refuse to employ union members Unions excluded altogether from car industry Employers able to keep wages low and working hours long - time when profits increase rapidly
34
1920s influence in foreign entanglements Coolidge
Business corporations bought oil concessions in many countries like Canada Firestone corporation developed a rubber industry in Liberia Guggenhams invested in South America to produce nitrates, copper and lead United Fruit Co had large budget in Costa Rica US dominated Canadian markets and effectively destroyed their car industry US refused to trace or co-operate with USSR but American businessmen infiltrated the USSR. 133% of Ford Tractors went there) 1919- foreign investments in overseas: $700m 1930= $17200m
35
1920s Coolidge Road building
Breaking with laissez faire - The government investment a great deal in road building programmes 3 million miles of road in 1920 were largely unavailable to cars (1% available) Federal Highway Act 1921- led to 10,000 miles of road built by 1929 This had massive knock on effect
36
Who missed out on the 1920s boom
Farmers in South Carolina South Carolina Farmers Native Americans and African Americans Women
37
His far so farmers in South Carolina and South Carolina in general, Miss out on the boom?
1929- farmers in South Carolina made $129 a month W in NY made $881 Fruit farmers in California - $1246
38
How did farmers miss out on the boom
Overproduction - more produced than ever before - more than pop eat - causes prices to drop - lower income for farmers To keep incomes up - farmers grew more and cycle continued Farmers took our mortgages worth $200m during the 1920s Precipitation cut demand for grain Synthetic fibres mean no need natural Improved fertilisers, husbandry techniques lessened demand for workers Overproduction led to dustbowls and droughts
39
How did native Americans and African Americans miss out on the boom
Native Americans often had difficult life on infertile reservations African Americans made up 10% of pop, but 85% lived in south, many as sharecroppers who lived in cycle of debt and poverty There was considerable migration north to search for far better opportunities to large cities - but here too, African Americans discrimination
40
How did women miss out on the boom
By 1920 eg only 150 female dentists Women enjoyed more opportunities as clerical works and salespeople but overall got paid less than men Despite Jazz age of flappers, women were generally expected to concentrate on home and marriage
41
Name the 7 problems in the economy
Uneven distribution of wealth Rural poverty Get rich quick Banking schemes Cycle of international debt Slow down
42
How was unequal distribution of wealth a problem in the economy
Income distribution Employment Old industries - coal and cotton —> unemployment Women —> unequal pay gap Nature and AA tend to be in agricultural work
43
Explain rural poverty as a problem in the economy
Farmers economic problems Role of gov Agricultural business
44
Explain banking schemes as a problem in the economy
Federal reserve board State banks
45
Explain the cycle of international debt as a problem in the economy
Loan repayments Dawes and young Plan US investment abroad
46
Explain slow down as a problem in the economy
Small businesses for every 4 businesses, 3 failed Construction industry circula 1926 Failing domestic - demand saturated
47
Explain get rich quick schemes
Early 1920s Porru coined thousands into investing in his ventures He promised 50% profit return in 90 days Florida land boom - 1920-25- population increased from 0.8 million to 1.2 million Panels on land sold to wealthy northerners who had often not seen them People began to invest money into unseen developments, hoping to sell, make quick profit —> often people only put 10% deposit as binders Nature destroyed Florida Land Boom - hurricanes killed 400 on 1926 and Medeteraniun fruit fly dried up citrus industry People found out investments worth nothing or did not exists No recovery until WW2 when Florida became major military training centre
48
Explain stock market speculation
Very few prepared go learn from Florida land Boom and speculative investment on stock market continued Revisionist historian - only 1.5m people Large concerns were investing profits in the stock of others Eg Bethlehem Steel Corporation and Electric Bond and Share eavhcinvested $157m in market by late 1929 If prices fall- firms might go bankrupt
49
Explain federal reserve board
Banking system out of date in 1920s 12 regulatory reserve banks headed by federal reserve board System allowed banks to regulate themselves w/o gov interference The reserve banks represented the interests of the bankers and therefore could not be relied upon to act in interest of nation if - issue - While national banks had to join the centralised system, local state banks did not - In 1920s - almost 30,000 banks in US. - Most = v small -> unable to cope w financial problems - If collapses - depositors prob lose all savings Federal reserve board favoured low interest rates - encourage easy credit. Also wanted to see a flow of gold from USA to Europe so Europe can pay back loans
50
Explain cycle of international debt
US priority = European nations repay loans - Europe still suffering from war - could not 1922- Congress created the Debt Funding Commission. Suggested deadlines set at 1947- interest at 4.25% Europe cannot accord Further agreement - 1923- harsh Get started to experience severe eco inflation in 1913 due to repetitions Under Dawes plan and young plan - USA lent money This resulted in USA taking money out of Treasury building and putting it in another Europe slowly started to recover as consequence But w repetitions - triangle of international debt Should anything happen to US eco :O
51
Was the boom slowing down
For every 4 businesses that succeeded, 3 failed. Gov not prepared to help Construction boom 1920s. But 1926- died down - decline in building materials and skills like plumbing - led to higher unemployment in construction - related business and had srs knock on effects Late 1920s production outstrips demand. More and more people in no position to spend in non essential items 1929- 10% Philadelphia labour force unemployed Estimate 1929/ 80% living close to subsistence Overall workers not protected by labour unions Supreme Court helpful - blocked child labour and minimum wages for women But many employers operated yellow dog clauses which their employees not allowed to join union
52
Causes and effects of Wall Street crash 22 October 1929
Share prices plummeting on NY stock exchange - SUDDEN Within an hour - 2.2 million shares sold
53
What had stock market been like 5 years prior to 1929
Market only gone up
54
Causes and effects of Wall Street Crash 24 October 1929
People came in to trade stocks No buyers - price of shares fell 20,30 points at a time —> stunned
55
Causes and effects of Wall Street crash 29 October 1929
A financial catastrophe —> sweet | Away US catastrophe
56
How could the cause of the Wall Street crash be traced back to 1918-19
WW1
57
Cause of Wall Street crash How did life change in the 1920s
Electrically, airplanes, radios, car industry —> luxury new necessity has
58
Wall Street crash : cause and effects How could people afford shares? Outline how bonds/ easy credit worked
Credit —> buy now pay later Bonds —> borrow money from public to pay for war —> paid in interest —> Wall Street took advantage
59
Causes and effects of Wall Street crash Outline detail of Mitchell
President of national city bank Market eg corporate bonds and tell people they’re respectable investments
60
How did technology help sour boom
Telegraphic ticket rape machines —> share prices shown
61
Wall Street crash - cause and effects What is a speculator and who were the speculators? What was the speculator frenzy
Embraced all types of people into the stock market —> investment in private business !!
62
What was the effect of the speculative frenzy
3 million on market —> it now pay later —> buying w borrowed money
63
Causes and effects on Wall Street crash What is buying on margin and the bulk market What are the dangers/effects/rules/who did it
Bull market - shares only go up Effects —> more demand for shares 1927- 50% - more borrowed People who did it - men from no where, celebrities, Wall Street, women
64
Hoovers view on economy before depression
Republican - laissez faire
65
Who is Warburgh
He issued a warning prior to depression but was disregarded
66
Situation Sept 1929
Market was volatile Hoover was unease’s
67
When was the stock market crash
23 Oct 1929
68
When was Black Thursday and what was it
24 Oct 1929 Beginning of crash
69
How did bankers try to restore confidence after crash? Did it work
Mitchell - meeting at JP Morgan - made pool of $250 million to support key stocks Eg Rockefeller bought a big share WORKED
70
28 October 1929
Panicking investors want to see prices - people see wrong of easy credit
71
What happened 29 October 1929 What was hoovers response
Share prices plummeted 22% less than 28th October Hoover - it’ll solve self - laissez faire
72
29 October 1929 + What were the effects on the rest of the US esp those who did not invest
$25 billion gone $5 billion in personal wealth gone Jobs lost Mortgages houses Victims Confidence sunk Suicide
73
How did events lead to the Great Depression
Confidence sunk - banks failed
74
What happened to banking across USA after 1929 Oct How did things spiral
3000 banks closed next year ``` Spiral Loading money Prices fell Money dissapeared Companies let workers go Companies stop production Can’t get loans Bankrupt as cannot pay people off Laid them off ```
75
Unemployment stats 1929-33
1929 3% unemployed | 1933- 25% unemployed
76
Bank failure stats 1929-33
1929- 599 banks failed | 1933- 3927 banks failed
77
Wheat prices stats 1920-24
1920-$2.45 per bushel | 1924- 0.62 per bushel
78
How did the depression effect agriculture
Big agriculture Drought - dust bowls -erosion Repossessed Uneven distribution of wealth Mass poverty AA
79
Overall what was the gov response to the depression
Too little too late Hoovervilles Hoovenlags Voluntarism Bonus army
80
Overall how did the depression effect US economy
Structural unemployment federal reserve
81
Overall how did the depression affect people’s lives
Unemployment Rugged individualism Voluntarism relief Migration
82
Overall how did the depression affect industry
Saturation Worthless Slowdown in demand
83
Name the 8 things Hoover ‘addressed’ to deal w the depression
Agriculture Tariffs War debts Voluntarism Unemployment relied Home loan act RFC Jan 1932 War veterans and Bonus Army
84
How did Hoover and admin deal w agriculture during the depression to tackle it
Agriculture marketing act 1929 9 person board with £500m to create co-operatives AIM was to buy, store and dispose surplus No power to reduce production, prices therefore continued to fall Therefore buying at this rate was waste of money When congress proposed bill to reduce production, Hoover opposed it
85
How did hoovers administration deal w tariffs during the Great Depression to tackle it
Hawley smoot tariff 1920- highest 40% on agriculture and industry Most European nations abandoned free trade and therefore even fewer goods were exported Therefore farmers fought it and only passed by 2 votes Hoover could have vetoed but did not
86
How did hoovers administration deal with war debts during the depression to tackle it
Hoover blamed depression on Europe Trade fell after 1930 by $500 m $1.2 billion in 1931 1931- Hoover issues moratorium on debts but it was too late + most European countries collapsed
87
How did hoovers administration use voluntarism during the Great Depression to tackle it
Hoover advocated voluntarism Business had to cut back Voluntarism could not work
88
How did Hoovers administration tackle the Great Depression with unemployment relief
$500m secures from Congress in 1932 to secure relief President Emergency Committee to help agencies organise But Hoover would not issue direct federal relief In the end $47m was made available and only as loans
89
How did Hoover deal with the depression using the home loan act
1932 As loan - was only 50% of value property Ineffective
90
How did Hoovers administration tackle the Great Depression with the RFC
January 1932 Most radical measure Could lend up to £2b to rescue banks etc Designed to restore confidence 90% small and medium banks Argued that it only helped large firms but gov argued these needed help most No money given to individuals Eventually - July 1922 - $4.5 billion lent to public works, he lost support from reps
91
How did hoovers administration tackle the Great Depression with war veterans and bonus army
Hoover set up .org to help veterans with disabilities Congress agreed bonus in 1925 Hoover offered to pay their way home Many leafy squatting Army moved in and removed them Violent dispersal often seen as last act
92
What is the extent of the Great Depression and expectations of Hoover
Hoovers first response was mostly passive, trusting in the conservative approach to leave business to sort it out Later 1931-32 Hoover changed his mind and carried out a few interventionalist policies — too little too late
93
Historical interpretation of Hoover
!
94
Evidence Hoover tried to sort out depression
Set up organisation to help veterans with disabilities
95
Evidence Hoover caused damage during depression or was too little too late
RFC- Jan 1932- no money given to individuals July 1932- $4.5b lent to public works only Voluntarism no work 1931- Hoover issued movatorium (temp postpone of debt)but too late - European countries collapsed
96
Long term causes of depression Pre 1929
Decline in agriculture Decline in staple industry Overproduction Uneven distribution of wealth Get rick quick Decline in trade (high tariffs) Cycle of international debt Native of Great bull market Loans Gov Psychology
97
Short term causes of depression (1929-30)
Wall Street crash Car ownership boom ended 1929 before WSC Construction boom ended 1929/9 before WSC Industry production 1929 (2 months before WSC)b
98
Causes of depression | During the depression
Hoover Laissez faire Voluntarism Allowed deflation Mellon ‘plurge the rotten elements’ Banking crisis
99
Republican policies
1923 Fordney McCumber tariff - protectionism Isolationism Laissez faire Rugged individualism 1920 majority of tax payers paid 5% federal income tax - Mellon Plan
100
Credit
People bought on credit - luxury items- putting some money down 1st - followed by 1-5 year’s monthly payments Due to laissez faire Easy credit - inc in consumer indebtness - dramatic decline in savings 75% of pop spend most of yearly income to purchase foods inc food and radios Consumer credit 1929- outstanding £3 mill People gambled on stock market ‘safe bet’