Post-War United States of America
Download
Report
Transcript Post-War United States of America
Post-War
United States of America
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”.
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.
Unfortunately, the U.S.A, Great Britain, and
France could not agree on set limits….so each
just lessened amount of arms.
America was the strongest country in
the world.
◦ Solid industry and stable economy.
!!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….
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
Stock Market CRASHES -October 29, 1929
Fortunes lost, jobs lost,
factories close.
By 1932, over 30 million
unemployed.
Period of economic crisis.
High unemployment
◦ 25% (1933)
9% (2010)
Homes lost
Suicide of Wall Street executives
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.
“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.
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”.