Politics of the Boom to Bust 1920-1932

Question 1

Harding’s Presidency 1920-1924
Political Corruption

Answer 1

Warren Harding was apart of the Ohio Gang, a political machine running a republican party in Ohio. He brings gang with him to DC. Harding wasn’t confident in himself. He appoints 4 conservative justices into the supreme court, striking down child labor laws, women in the workplace, and unions. the Attorney General is brought up on charges of fraudulently handling German assets after the war, selling pardons. Veterans Bureau caught stealing medical and hospital supplies. Secretary of interior, Albert Fall, gets to choose which oil companies will pay the most to drill. He makes money by cherry picking who gets to drill on private land.

Question 2

Harding’s Presidency 1920-1924
Business

Answer 2

Mellon as secretary of treasury reduces the graduated income tax, so some of the tax responsibility is on the growing middle class. The biggest consumers are taking up the taxes, and negatively impacting the economy because they’re paying more in taxes to make up for the wealthy. The republicans like the tariff, putting it at 38.5% in order to protect American business, but it hurts struggling Europe’s economy.

Question 3

Harding’s Presidency 1920-1924
Regulatory agencies

Answer 3

Creates the progressive FTC, ICC< and Federal Reserve board. Like Wilson, Harding puts conservative minded men on these boards. These men aren’t concerned with changing anything, despite being apart of progressive organizations.

Question 4

Calvin Coolidge
Election of 1824

Answer 4

Takes over after Harding dies 3 years into term. Was looked at as a welcome change as a fundamentalist, Christian guy. He was pro-business and republican. Doesn’t believe he needs to be very active. He wins the election, putting Herbert Hoover in charge of the commerce department, promoting associationalism, acting like a trust to standardize industrialization, share information, and set prices.

Question 5

Calvin Coolidge
Farmers

Answer 5

WWI’s need for more food for Europe helps raise money for farmers. However, the demand slumps because they can now make their own food. They try to unionize to form farming cooperatives. the American Farm Bureau Federation try to function like businesses. the McNary-Haugen Bill is passed, putting tariffs of farmed goods, so farmers benefit. If we can make US crops scarce, the prices would rise. However, it is vetoed in 1927 and 1928, saying that the government shouldn’t be in the business of fixing crop prices.

Question 6

Calvin Coolidge
Labor Unions

Answer 6

Coolidge continues to practice hiring conservative judges. Union cases will most likely be brought down. Real wages are increasing, and membership starts to decrease because wages aren’t too big of an issue now. Government offers bonuses for working well, offering health programs to employees, pensions, etc., getting rid of the need for labor unions.

Question 7

Calvin Coolidge
Veterans- American Legion

Answer 7

Formed as a social club after WWI to defend patriotism and moral conservatism. They want to Gov. to pay for their lost factory wages. They want the US to give veterans a bonus in 20 years in 1945. If they agree, it would ensure the republican vote because they gave them the pension.

Question 8

Herbert Hoover
Election of 1928

Answer 8

Pro-tariff, pro-business, and for prohibition. Hoover appeals to southern democrats. Believes in self-help rather than direct government aid. He creates the federal Farm Board in 1929, believing farmers need support. They allow cooperatives to store, buy, or sell their stocks. He also lowers taxes for lower incomes. He tries to get more women and African Americans on prison parole boards to be more sympathetic. He is less conservative than the previous 2 presidents, more willing to do change.

Question 9

Herbert Hoover
Panic of 1929- Effects on economy

Answer 9

Stock speculation bubbles bursts. 40 billion is lost for stockholders. People run to banks, pulling out their cash, leading to no more cash reserves because the banks aren’t regulated.

Question 10

Herbert Hoover
Panic of 1929- Causes

Answer 10

Lack of government regulation. Middle class is paying large portions of taxes, and are the biggest consumers. There is a limit of credit, overproduction, and profits going to the wealthy. There is a decrease in international trade because of the high tariffs.

Question 11

Herbert Hoover
Panic of 1929- Effects on people

Answer 11

People are losing their jobs, life savings. Unemployed goes up to 25-33%, and no jobs are available. Families cannot be provided for. People feel shameful that they lost their jobs. Hoover gets blamed for the Hoovervilles, hoover blankets, and hoover flags, showcasing that people have no money.

Question 12

Hoover’s Response
1930 Hawley-Smoot Tariff

Answer 12

Raises tariff to 60%, but hurts European allies and causes a worldwide depression. Promotes volunteerism, asking companies to work together, promotes government programs, like building large public works. Built the Hoover dam. Creates the Federal Farm board, increasing loans to farmers. Muscle-Shoals Bill damns up the Tennessee river, but Hoover vetoes it for being too socialistic

Question 13

Hoover’s Response
Depression worsens- Develops Reconstruction Finance Corporation in 1932

Answer 13

Government loans millions to railroads and banks, giving the money to the already rich people. If they give out enough money then they will get a service from it, but the people think that the rich are part of the problem

Question 14

Hoover’s Response
Depression worsens- Emergency Relief construction act 1932

Answer 14

Creates emergency loans to states for public works. Closest Hoover will get to a handout.

Question 15

Hoover’s Response
Depression worsens- Norris-LaGuardia Anti-Injunction act 1932

Answer 15

Hoover is trying to help labor unions by outlawing yellow-dog contracts and recognizes the right to strike. It is an attempt to address labor

Question 16

Hoover’s Response
Depression worsens- Farmers discontent

Answer 16

Farmers are getting loans, but lots can’t pay their bills and courts are trying to foreclose their farms. They withhold food deliveries. Lack of coordination had never allowed to fight as a unified body until now.

Question 17

Hoover’s Response
Depression worsens- Bonus Army

Answer 17

Douglass MacArthur and WWI veterans march on DC and are named the Bonus army. They ask for their 20 year bonus early instead of in 1945. 20,000 families poured into Washington. Came to blow with the police. Hoover becomes more unpopular, even though unwise spending is the true culprit to the depression

Question 18

Harding’s Foreign Policy

Answer 18

Want to continue to be isolationists except to trade and make money. Creates the 9 Power Treaty in 1922, which opens the door to China. Wants to help lessen taxes on business. We don’t want to build up the army because it might lead to war, so they reduce defense spending. They have a 10 year holiday on making battleships. They Parody on battleships will have a ratio of 5-5-3 for GB, US, and Japan respectively for tons of battleships.

Question 19

Coolidge Foreign Policy

Answer 19

Dawes Plan in 1924, which rescheduled German war reparations. US investors would give money to banks, banks would loan out to Germany, who would then pay back Europe, then bring the money back to US. Kellogg Briand Pact 1928, which is a pact between 62 nations that war is outlawed. You can’t do anything to stop others from breaking the pact, making it weak.