Section 1 Flashcards
What is a recession?
An economic slump.
Who had to fight a sharp recession when they took office in 1921?
Republican Warren Harding.
After the war, how many soldiers came home and began to look for jobs?
2 million
When soldiers were coming home from war, factories stopped doing what?
Making war materials.
Who did Harding choose for top cabinet posts?
Able men who followed pro-business policies.
For other cabinet posts, who else did Harding bring in?
His old friends.
Harding was honest and hard-working, but his friends saw the government service as a way to what?
Enrich themselves.
A series of what followed as Republican Warren Harding took office?
Scandals
Which one of Hardings appointees was convicted of stealing millions of dollars from the Bureau?
Charles Forbes.
What did Harding die of?
A heart attack.
After Hardings death in 1923, more of what came to light?
Scandals.
What was the most serious scandal?
The Teapot Dome scandal.
What took place in the Teapot Dome scandal?
To oil executives had bribed secretary of the Interior Albert Fall in order to get secret leases of government land in California and in Teapot Dome Wyoming.
When Calvin Coolidge became president what did he set out to repair?
The damage the scandals caused Republican Party.
Like Harding, what did Coolidge believe that prosperity for all americans depended on?
business prosperity.
What did Coolidge cut regulations on?
businesses.
What did Coolidge name to government agencies?
business leaders.
What did Coolidge’s policies contribute to?
A time of economic growth.
The postwar recession ended as factories did what?
Switched to consumer goods.
What were some examples of prosperity?
Production increased, incomes rose, and consumers bought the new consumer products that were being made.
To attract buyers, what increased?
Advertisement.
To attract even more buyers, businesses began to allow what?
Installment buying.
What was installment buying?
Buying on credit.
Explain installment buying.
It’s when buyers made a small down payment, then paid in installments each month until they had paid the full price plus its interest.
This new policy increased the demand for what?
Goods.
At the same time, installment buying made what rise?
Consumer debt.
What did the economic boom give a boost?
The stock market.
What are stocks?
Shares of ownership.
Who did Corporations sell stocks to?
Investors.
Investors may or lost money depending upon what?
Whether the price of the shares went up or down.
Stock prices rose so fast that some people made what?
Fortunes overnight.
What is a bull market?
A period of increased stock trading and rising stock prices.
Many people bought stocks on what?
Margin.
With this message, an investor bought a stock for as little as what?
10% down payment.
In a margin, the buyer held the stock until what?
Until the price rose and then sold it at a profit.
Margin buying worked as long as what rose?
Stock prices.
By 1928 and 1929, a few experts were warning that the bull market could what?
Not last forever.
After World War I United States was the world’s leading what?
Economic power.
President Harding and Coolidge wanted peace in Europe, but they did not want United States to do the job of what?
Keeping world peace.
The United States refused to join the league of Nations and return to what?
It’s prewar Isolationism.
What happened to trade and investment in Latin America during and after World War I?
It increased.
United States intervened in Latin America to protect its what?
Economic interests.
Who did Coolidge send when a revolution broke out in Nicaragua where Americans owned plantations and railroads?
The Marines.
Who did Wilson send to work out a compromise when Mexico announced plans to take over foreign-owned oil and mining companies?
A diplomat
In the Soviet Union, V.I. Lenin created the world’s first what?
Communist state.
What is communism?
An economic system in which the community as a whole owns all wealth and property.
Even though Americans despite communism, Congress voted $20 million in aid when what threatened Russia 1921?
A famine
In Europe, what had helped cause World War I?
An arms race.
Many people in the 1920s favored the reduction of Armed Forces and weapons of war called…?
Disarmament.
At the Washington conference of 1921, who agreed to limit the size of their navies?
The United States, Britain, and Japan.
In 1928, the United States and 61 other nations signed the what?
Kellogg-Briand pact.
What did The Kellogg-Briand pact outlaw?
war.
The Kellogg-Briand Pact did not set up any means for what?
keeping the peace.
