Unit 5 Lesson 1 Flashcards
When the war ended, more than 2 million soldiers came home and began to look for jobs. At the same time, factories stopped turning out war materials. This lead to what?
The result was a sharp recession, or economic slump.
How did recession make voters feel about the democrats, and which candiate were they leading towards?
The recession fed voter discontent with the Democrats, who had held power for eight years. In the 1920 election, Warren Harding swamped his Democratic opponent.
What kind of people did Warren Harding hire for Cabinet posts?
For the top Cabinet posts, Harding chose able men who strongly followed pro-business policies.
Who was Andrew Mellon? Who was he hired by?
He was hired by President Warden Hardling
Andrew Mellon, a wealthy banker, became secretary of the treasury. Mellon balanced the budget and lowered taxes.
Who was Herbert Hoover? What did he during during World War I?
During World War I, Hoover had earned the world’s admiration by organizing efforts to supply food to millions of starving Belgians. As secretary of commerce, he worked to help American businesses expand overseas.
What was Herbert’s new job?
Herbert Hoover became the new secretary of commerce.
Who was the Ohio Gang?
To fill most other Cabinet posts, however, Harding brought in his old friends. They became known as the Ohio Gang. Harding himself was honest and hard-working, but the Ohio Gang saw government service as a way to enrich themselves. A series of scandals resulted
Describe the scandal from the Ohio Gang relating to the Veteran Bureau, and who Charles Forbes?
Harding made Charles Forbes head of the Veterans Bureau. Forbes was later convicted of stealing millions of dollars from the bureau.
How did Harding react to these scandals?
Harding looked upon Forbes’s crime as a betrayal. When rumors of new scandals surfaced, he grew even more distressed. In August 1923, Harding died of a heart attack. Many believed that the scandals contributed to his sudden death.
What was the Teapot Dome Scandal? Who was involved? Albert Fall was the first person do go to..??
After Harding died, new scandals came to light. The most serious involved Secretary of the Interior Albert Fall. Two oil executives had bribed Fall. In return, he secretly leased them government land in California and at Teapot Dome, Wyoming. As a result of the Teapot Dome Scandal, Fall became the first Cabinet official ever sent to prison.
How was Coolidge as a person different from Harding?
“Silent Cal” Coolidge was very different from Harding.
- Harding loved throwing parties and making long speeches.
- Coolidge was tight with both money and words
What was the first thing Coolidge did as president?
Coolidge set out to repair the damage caused by the scandals. He forced the officials involved in scandals to resign.
How did the election of 1924 go? Who won?
In 1924, Coolidge ran against Democrat John Davis and Progressive Robert La Follette. Voters chose to “Keep Cool With Coolidge” and returned the cautious New Englander to office.
How was Coolidge similar to Harding?
Like Harding, Coolidge believed that prosperity for all Americans depended on business prosperity. Coolidge cut regulations on business. He also named business leaders to head government agencies.
Coolidge’s pro-business policies influnced what?
Coolidge’s pro-business policies contributed to a period of rapid economic growth. People referred to this boom as “Coolidge prosperity.”
1923-1929 was called what?
“Coolidge prosperity”
How Coolidge’s pro business stance affect America?
As factories switched to consumer goods, the postwar recession ended. From 1923 to 1929, the quantity of goods made by industry almost doubled.
For most Americans, incomes rose. As a result, they were able to buy a flood of new consumer products.
What was installment buying? What was it a response to?
Faced with so many goods, people often wanted to buy things they could not afford. In response, businesses allowed installment buying, or buying on credit. For example, buyers could take home a new refrigerator by putting down just a few dollars. Each month, they paid an installment until they had paid the full price, plus interest, or a percentage of the price charged as a fee for the loan.
What did the new poilcy of “buy now pay later” increase?
- The new policy of “buy now, pay later” increased the demand for goods.
- At the same time, however, consumer debt jumped. By the end of the decade, consumers owed more than the amount of the federal budget.
How did an economic boom influence stock?
- The economic boom of the 1920s gave the stock market a giant boost. Corporations sold stocks, or shares of ownership, to investors. Investors made or lost money depending upon whether the price of the shares went up or down.
- By the late 1920s, more people were investing in the stock market than ever before. Stock prices rose so fast that some people made fortunes almost overnight.
What is a bull market
Such a period of increased stock trading and rising stock prices is known as a bull market.
What was a margin? How did it work?
Many people bought stocks on margin. Under this system, an investor bought a stock for as little as a 10 percent downpayment, or margin. The buyer held the stock until the price rose and then sold it at a profit. Margin buying worked as long as stock prices kept going up.
What did experts say about the stock market?
In 1928 and 1929, however, the prices of many stocks rose faster than the value of the companies themselves. A few experts warned that the bull market could not last forever. Still, most investors ignored the warnings.
How did Harding and Coolidge feel about international affairs?
Presidents Harding and Coolidge wanted to keep the hard-won peace in Europe. However, they did not want to commit the United States to the job of keeping world peace. The United States sent observers to the League of Nations but refused to join. Most Americans supported this return to prewar isolationism.
