President Warren G. Harding

1
President Warren G. Harding

• Likeable, friendly, popular
• Average intelligence, easily swayed tricked
• Builds strong administration around him too
  strong?
• Very pro-business
• Supported laissez-faire economics
• Fordney-McCumber Tariff passed raising import tax
• Enjoyed a thriving post-war economy

2
Presidency Scandals

• Hardings administration takes advantage of him
• Col. Charles Forbes embezzled 200 million while
  in charge of Veterans Bureau
• Convicted prison sentence two years
• Attorney General Harry Daugherty accused numerous
  times of selling pardons and illegal liquor
  permits
• Never convicted despite heavy evidence
• Teapot Dome Scandal - Sec. of Interior Albert
  Fall illegally places Teapot Dome (Wyoming) under
  his jurisdiction after oil is discovered in
  region
• Took bribes for drilling rights
• Convicted prison sentence one year
• Stress of scandal becomes overwhelming on
  Hardings health
• Collapses and dies in 1923

3
President Calvin Coolidge

• Very serious, calm, boring and quiet
• Silent Cal
• More pro-business than Harding
• The man who builds a factory builds a temple and
  the man who works there, worships there
• Rides Americas thriving economy to reelection in
  1924
• American public happy with economy, isolationism
• Democratic party lacked direction unity in such
  changing times

4
War Debt

• Coolidge and Congress demanding loaned money to
  Europe from WWI be repaid
• Germany could not afford to pay Britain and
  France, who could not afford to pay America
• Dawes Plan created in 1924
• 1 - America loans money to Germany
• 2 Germany makes reparation payments to France
  Britain
• 3 France Britain repay war loans to U.S.
• 4 Germany eventually repays America for Dawes
  loan
• No interest charged

5
Dawes Plan

• What does the Dawes plan accomplish?
• Financially nothing, more a matter of principle
• Coolidge They borrowed the money didnt they?
• England France angered see U.S. as greedy
• Dawes Plan shows little progress after 5 years
• Young Plan (1929) restructures loan to Germany,
  includes interest
• Would not matter by end of 1929 why?

6
Election of 1928

• Coolidge decides not to run for reelection
• Republicans nominate Sec. of Commerce Herbert
  Hoover why?
• Economic prosperity made him popular choice
• Hoovers slogan Rugged individualism
• America needs to return to roots of tough,
  self-sufficient individuals
• Dems nominate Alfred Smith
• Likeable and sociable NY Governor
• Campaigning over radio major factor in election
• Hoover sounded better than Smiths NY accent
• Smith portrayed as a drinking, Irish, Catholic,
  city-slicker significance?
• Prohibition
• Dems supported mostly in South Smith not
  popular among Southerners
• Hoover wins by a landslide

7
President Herbert Hoover

• Benefitting from economic prosperity at first
• Pro-business and isolationist
• Support of farmers lending money, buying
  surpluses
• Hawley-Smoot Tariff proposed raises import tax
  to almost 60
• Full-blown isolationism Europe furious
• Dangerous lack of presence in European affairs
• Slowed trade America self-sufficient enough in
  1920s, but
• Will worsen economic conditions during the
  Depression

8
Economic Depression Hits

• Americas economic prosperity in 1920s largely
  built on credit and investment
• U.S. Stock Market was growing too large, too
  fast problem?
• Not built on physical wealth or assets
• Built on borrowed money and entangled investments
• A trigger could cause a crash, a crash could
  cause a dangerous chain reaction
• Leading to economic depression

9
Black Tuesday

• October 29, 1929 the U.S. Stock Market Crashes
• Rumors of economic trouble in England scares
  stockholders
• Panic-selling ensues, prices plummet
• Stockholders lost 40 billion by January
• Crash triggered, chain reaction starts
• Frightened public becomes overly-cautious with
  their money
• Panicking public pulls all their money out of
  banks fearing banks would go bankrupt
• Businesses cant attract scared customers close
  down
• As businesses close, unemployment rises
• Great Depression begins

10
The Great Depression

• Underlying causes of the Great Depression
• Trend of mass-consumerism based on credit, not
  real money
• Over-speculation in stocks
• Over-production in factories and farms
• Became international depression struggling
  European postwar economies suffered
• Caused affected countries to dive deeper into
  isolationism
• Coincidentally, droughts dried up regions of U.S.
  further hurting farmers

11
Hoovers Initial Response

• Hoover blamed for depression unfair?
• Many Americans looking to Hoover for help
• Rugged individualism being stressed
• Hoover slow to take action
• Saw this as part of a natural business cycle
• Economy has ups and downs this was a natural
  downturn
• Unsure if government intervention would even be
  helpful
• Hoovers solution was to wait it out
  unpopular decision

12
Hoovers Slow Reaction

• Soup kitchens and shelters on the rise
• Newly forming shanty-towns soon to be called
  Hoovervilles
• Bonus Expeditionary Force (BEF) formed by
  veterans to demand bonuses for participation in
  WWI
• Camped out in DC, forcefully evicted by Gen.
  MacArthur and U.S. army in Battle of Anacostia
  Flats
• Ugly incident hurts Hoovers image further

13
Hoover Takes Action

• Urges Congress to jumpstart economy with over 2
  billion in government spending
• Reconstruction Finance Corporation (RFC) passed
• Lends money to finance massive government
  projects
• Hoover Dam massive project employs 20 thousand
• Would eventually fund many of FDRs New Deal
  projects
• Hoover goes on good-will tour of Latin America
  to repair their tarnished relations with America
• New policies call for less dollar diplomacy and
  troops pulled out of Haiti and Nicaragua
• Laid foundation for FDRs Good Neighbor Policy
• Hoovers legacy despite slow response and
  tarnished image, Hoover did help America battle
  the Great Depression
• But effects of his efforts not felt until after
  his presidency

14
Trouble Brewing Overseas

• 1931 Japan invades Manchuria region of China
• Violates all idealistic agreements forbidding
  imperialism made after WWI
• League of Nations respond with hollow threat of
  universal trade boycott against Japan not
  effective, why?
• Depression forces need for some nations to trade
  with Japan
• Failure of League of Nations to enforce its
  rules was a dangerous precedent why?
• Displays the Leagues policy of appeasement
• Aggressive nations could take over weaker nations
  without penalty or interference
• First steps toward WWII taken

15
Election of 1932

• Hoover runs for reelection
• Argued he had helped the economic situation and
  the worst has passed
• Dems nominate Franklin Delano Roosevelt or FDR
• NY Governor with peoples touch
• Always smiling, good speaker with a sense of
  caring for the common person
• Eleanor Roosevelt very proactive in politics as
  well
• Confidence his catchphrase and Happy Days Are
  Here Again his campaign song
• Hoover had no chance, FDR wins by a landslide
• Hoover humiliated even loses in home state of CA

16
Election of 1932

• Voting trends change
• Black voters overwhelmingly switch from
  supporting Rep party to Dem party why?
• Great Migration of the 1920s massive movement
  by blacks from rural South the urban North
• New, competitive industrial labor and racism led
  to inequality for black workers
• Last hired, first fired
• Reps had become big business-minded
• Sided with business owners
• Dems more progressive

17
President Franklin Delano Roosevelt

• Takes office at worst point of Great Depression
• Unemployment (25) and bankruptcies at all-time
  high
• Only thing we have to fear is fear itself
  meaning?
• Americans should stop being fearful of
• Spending until economy improves
• Putting their money in banks
• Stressing confidence fear and panic is only
  making things worse
• FDRs platform The Three Rs
• Relief Was for immediate action food, shelter
• Recover Was for a year or two climb out of
  Depression
• Reform Was for after Depression ensured to
  never allow this to happen again

18
The New Deal

• The New Deal FDRs plan for pulling America out
  of the Great Depression
• FDR had support of overwhelmingly Dem-controlled
  Congress
• First 100 Days passes numerous bills into law
• Gained public support
• Fireside Chats series of radio segments
  talking to Americans about problems faced and
  progress made

19
The New Deal Managing Money

• Emergency Banking Relief Act sets up bank
  holidays
• Federal Deposit Insurance Corp (FDIC) insured
  up to 5,000 of peoples money in the bank
• FDR orders Federal Reserve to create inflation so
  debts can be repaid faster
• Lenders happy to be paid back, upset its at a
  lesser value

20
The New Deal Job Creation

• FDR uses federal money on programs and projects
  to help jumpstart economy
• Based off Hoovers RFC
• Civilian Conservation Corps (CCC)
• Hired young men to improve national forests
• Very popular and effective
• Workers Progress Administration (WPA)
• 11 billion spent for public facilities and
  infrastructure
• Hired federally-paid, unskilled workers to build
  smaller projects
• Criticized by some as boondoggling

21
The New Deal Industry

• Agricultural Adjustment Act (AAA) tried to help
  farmers by paying them not to farm why?
• Less spending ? oversupply of product ? prices
  fall ? product sells for very little or not at
  all ? farmers go bankrupt
• Farmers by law destroy excess crops, slaughter
  excess livestock
• Effect Farmers incomes did rise, but so did
  farmer unemployment
• National Recovery Administration (NRA)
• Aimed to help industry, labor, unemployment
• Relied on fair competition
• Spreads work out among more people due to
  increased hours, decreased wages
• Government forcing businesses to abide was
  unconstitutional dismantled
• Public Works Administration (PWA)
• Similar to WPA, but gave private firms contracts
  to hire skilled workers
• Worked on larger-scale projects building public
  works and infrastructure
• Bridges, dams, hospitals, schools, etc
• One of the most successful programs created in
  New Deal

22
New Deal Reform

• FDR vowed to reform to prevent future crashes
• Stock market reform
• Federal Securities Act companies must report
  honest financial numbers for investors
• Securities Exchange Commissions (SEC) set up to
  investigate and watch over stock market
  activities
• Housing reform
• Federal Housing Authority (FHA) low interest on
  homes
• Created shelter, economic bump, and employment
• Social Security Act sets up payment plan for
  senior citizens, handicapped, etc
• Funded by taxes on business and personal income
• Receives criticism from Republicans socialism
• Unions gain strength, numbers, and influence
  during Depression
• Norris-La Guardia Act outlaws anti-union
  contracts (AKA yellow dog contracts)
• Wagner Act legalizes union organization and
  collective bargaining
• Fair Standards Act minimum wage, maximum
  working hours, set working age at 16

23
The Dust Bowl (1933)

• Causes
• System of dry-farming used in plains for decades
  creates loose topsoil
• Long drought in lower plains region
• Heavy wind storms of 1933
• Oklahoma, Texas, Kansas farmland destroyed
• Many farmers migrate west to California looking
  for work
• Grapes of Wrath by John Steinbeck
• Government relief programs help relocate farmers,
  improve soil, plant trees as windbreaks (CCC)

24
Election of 1936

• Reps nominate Alfred Landon
• Gov of Kansas, criticized FDRs massive spending
• Hurt by record of past support of FDRs spending,
  weak campaign, weak radio voice
• Immensely popular FDR wins by an overwhelming
  landslide

25
The Court-Packing Scheme (1937)

• FDR still had Democrat dominated Congress, but a
  conservative Supreme Court
• FDR proposed to increase Supreme Court to 15
  justices and that justices over 70 be removed
• FDR can appoint liberal justices
• Congress shocked and upset with FDRs scheme for
  increased power
• Proposal fails, FDR accused of trying to become a
  dictator
• Effect was less cooperation from Congress

26
New Deal Effective?

• By 1937 Progress stalls, effects inconclusive
• Unemployment dropped from 25 to 15 in first
  term
• Roosevelt Recession in 1937 caused by policies
  like the Social Security tax on incomes
• Less income, less spending, less economic
  activity
• FDRs overspending and socialist policies
  gaining criticism
• Debt had doubled from 20 to 40 billion
• Government becoming too much of a handout state
• Americans not working towards recovery, but being
  given it instead

27
Legacy of FDRs New Deal

• Both heavily supported and criticized
• FDR took over in a chaotic time and made big
  changes while keeping peace and order
• Other nations (Germany, Italy) did not succeed in
  keeping peace and order during this economic
  turmoil
• The New Deal helped, but did not pull U.S. out of
  Depression
• What did?
• World War II