Download Post-War United States of America

Post-War
United States of America
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1.) What caused the stock market to become
unstable?
2.) This individual would initiate a plan to
help the U.S.A recover after 1929:
3.) Please explain the main goals of the “New
Deal”.
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An “ALLIED” Winner of WWI.
Has war debt paid.
Agrees to the KELLOG-BRIAND PACT of 1928
◦ “Renounce war as an instrument of national policy.”
◦ Disarmament – Reduction of armed forces and
weapons.
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Unfortunately, the U.S.A, Great Britain, and
France could not agree on set limits….so each
just lessened amount of arms.
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America was the strongest country in
the world.
◦ Solid industry and stable economy.
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!!BAD SIGNS!!
Overproduction – Production of
goods exceeds the demand for them.
Increased demand for foreign raw
goods.
Higher wages = price of goods
increases.
By late 1920’s disaster on horizon….
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Stock prices soar.
Investors buy stock on MARGIN.
◦ Purchase stock on credit -“GHOST MONEY”
People on edge and prices
begin to fall.
Brokers ask Investors to pay
money for the stocks bought
on margin.
◦ Most did not have the money to
pay, so they must sell the stock
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Stock Market CRASHES -October 29, 1929
Fortunes lost, jobs lost,
factories close.
By 1932, over 30 million
unemployed.
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Period of economic crisis.
High unemployment
◦ 25% (1933)
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9% (2010)
Homes lost
Suicide of Wall Street executives
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After President Herbert Hoover did little, a
new President will step up to meet the crisis.
Franklin Delano Roosevelt.
Initiates a policy known as “THE NEW DEAL”.
 Financial
relief for the unemployed.
 Agricultural subsidies to support farmers
and balance out supply.
 New jobs created by government funded
building projects.
 Fixed taxation issues.
 1935: Social Security Act
to protect citizens unable
or too old to work.
 Did
not end the Depression
◦ World War II did (need for food and
creation of arms/supplies).
 Main Theme: Non-interventionist state
→ social/welfare state
 Role of government is bigger than ever.
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“RED SCARE” – 1920
Authorities round and
prosecute foreign-born
radicals or those who are
suspected of harboring
communist ideals.
United States passes laws
to limit immigration of
people from Europe.
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
1.) What caused the stock market to become
unstable?
2.) This individual would initiate a plan to
help the U.S.A recover after 1929:
3.) Please explain the main goals of the “New
Deal”.