List as many “forgettable” Presidents as you can. • Why are the three Presidents of the 1920s considered to be “forgettable”? • What other time periods in U.S. History have “forgettable” Presidents?
The Politics of Boom & Bust1920 - 1932APUSH Chapter 32 Warren G. Harding 1921-1923 (died in office) Calvin Coolidge 1923-1929 All the presidents of the 1920s were Republican Herbert Hoover 1929-1933
The 1920 Election “Return to Normalcy”was Harding's campaign slogan
Elected 1920 Plagued by self-doubt High Tariffs p. 751 Scandal ridden administration “Teapot Dome” Spirit p. 293 Warren G. Harding p. 747 Harding is considered one of the worst Presidents in U.S. History
President Harding’s Cabinet Secretary of the Treasury: - Andrew Mellon Secretary of the Interior: -Albert Fall Head of the Veteran’s Bureau: - Charles Forbes The Ohio Gang Members of Harding’s cabinet - these old friends from Ohio who were extremely corrupt Forbes embezzled close to$200 million from Veteran’s Bureau construction projects
Gov’t Oil reserves in WY & CA Secretary of the Interior, Albert Fall accepted a bribe to lease government land to oil executives One of these areas was called “Teapot Dome” in Wyoming Fall was sent to prison The Teapot Dome Scandal Was President Harding aware of the amount of scandal in his administration? Did he ever find out?
Forced corrupt officials to resign Believed in little gov’t interference in the economy Fiscal conservative Anti-Union Increase in Americans income Calvin Coolidge “Silent Cal” – p. 753 “The business of America is business. The man who builds a factory builds a temple. The man who works there worships there.” – Calvin Coolidge What does President Coolidge believe American prosperity rests on?
Kellogg-Briand Pact p. 750 • Signed by 62 nations in 1928 • Prohibited the use of war as "an instrument of national policy.” • How was this flawed? • How would this contribute to growing American Isolationism after WWI?
Unraveling the Debt Knot p. 757 • Dawes Plan: Rescheduled German war reparations & opened the way for more private loans to Germany. • Who was Germany supposed to make reparation payments to? Long term effects? Does the U.S. ever really get their $ back?
Elected President in 1928 Self-made millionaire Rejects planned economy supports laissez-faire Gains power during an age of incredible prosperity Agricultural Marketing Act Hawley-Smoot Tariffincreased duties from 38.5 % to nearly 60% Herbert Hoover Hoover’s fortunes will be tied directly to the US economy
B/c of booming 1920's economy, $ were plentiful, so banks were quick to make loans to any investor The booming economy suggested a never ending era of prosperity – false sense of security Stock prices continued to increase – why? What was “buying on the margin”? Investors only had to pay for 10% of the stock's actual value at time of purchase End of Prosperity Hoover tries to slow speculation through the Federal Reserve Board
What does it mean to buy on the margin? Investors only had to pay for 10% of the stock's actual value at time of purchase How is this risky? What affect will this have on the future of the United States? Buying stocks on “the margin” p. 744
1920's had been a period of good economic times beginning in Oct. 1929, investors’ confidence dropped, leading to a market collapse all tried to sell at once and bottom fell out of market = panic selling… (many bankruptcies as banks called in loans) Tues. Oct. 29th, 1929- NYC Stock market crashed, causing a depression that would last until the 1940s. BlackTuesday 10-29-1929 Over 16 million shares of stock were Sold on Black Tuesday. The crash had a huge ripple effect on the economy…
By 1932 12 million Americans are jobless 5k banks close “Firing not hiring” Breadlines, soup kitchens Birth rate sharply declines Ragged Individualists What are Hoovervilles? Hoover Blankets? Hoover Flags? Spirit p. 298
Overproduction Underconsumption Stock market speculation - fueled by buying on the margin Overexpansion of credit High tariffs – Hawley-Smoot Major drought on the Great Plaines Inactivity of President Hoover p. 766 Spirit p. 306 - 308 What caused the Great Depression? P. 762 What made the Great Depression worse?
Thousands of WWI veterans descend on Washington D.C. & demand promised bonus for military service Vets refuse to leave & set up Hoovervilles all over D.C. Gov’t response? What did this signify? The Bonus Army p. 766