Quiz Review For Monday:

Miniunit:  Depression and Dictators

 

 

 

What caused a slowdown in the economy by the end of the 1920s?

The industrial workers saw their wages increase it did not keep up with the price increase of goods.  This reduced the demand for these goods.  As the demand fell, workers were laid off and the spiral continued.  Healthy industry began to slow (construction and automobile).  The farm industry was on of the most distressed and merited the most focus.  Overproduction on the farm kept prices low.

 

How did the candidates for president in 1928 differ?

-Hoover was the candidate for president on the republican side.  He had helped greatly with the relief effort in World War 1 and with business.  He represented a self made man and the protestant westerners.  He felt that the problems of the nation economically could be solved by hard work and not government support.  

-Al Smith, the son of an Irish immigrant born in the city, was the Democratic candidate.  He was born and bred in the city and felt the government should be active in the support and betterment of the economy. 

-Hoover won as a testament by the people that they believed the economy and the US were doing well.

 

Why did the stock market crash in 1929?

The investors in the twenties would buy stock in hopes that the prices of stock would rise and they would be able to sell to make a profit.  Investors would sometimes borrow the money from the brokers to pay for the stock (to buy stock on margin).  Yet stocks began to soar in price near the end of the twenties.  Cautious investors began to believe that the prices were inflated and began to sell.  This dropped the price of the stocks.  When this happened, more people began to sell.  As prices dropped more the brokers made margin calls (they asked for money back from those who bought on margin).  The banks then called the loans that the brokers had taken to buy the stocks.  As all brokers and investors sold stocks desperately to save money, the prices plummeted and the market crashed.

 

What does on margin mean?  What is a margin call?

See above.

 

What caused the great depression?

  1. The fall in demand and the increase in supply helped to cause the depression.  Mass production caused a surplus in the market on goods.  Wage increases did not keep up with the price of goods and a weak farm industry meant that farmers could purchase little.  Many items produced were also durable goods.  These items were designed to last several years before they needed to be replaced.  By 1929 people already owned these goods or could not afford them.  Business inventories (the goods on the shelf in the stores) remained the same, factories made less, and laid off workers, workers bought less, the spiral continued. 
  2. Bank failure also contributed to the depression.  The crash of the stock market caused some banks to fail when the brokers could not pay back their loans.   When banks failed people no longer made deposits, then many began to run on the bank (withdraw all of their money) and more banks failed.  International investors also removed money from banks and caused repercussions throughout Europe.

 

How did the depression affect business?

Industrial areas suffered greatly.  Payrolls dropped and unemployment soared.  The unemployed bought little more than food, so housing construction and accessories (radios, cars, clothes) came to a halt.

 

 

 

Be sure to understand how each of these terms contributed to the Depression.

 

 

  1. Durable Goods
  2. Business Inventories
  3. Bank Failure
  4. Wealth Gap
  5. Credit
  6. Reduced Taxes
  7. War  Loans
  8. Stock Market

 

 

 

 

 

Be sure to be able to represent this graph using 1920, 1921, 1926, 1932.

 

This graph is on page 603.

 

 

 

 

 

 

 

 

 

 

 

What role did the US play in Economic and political affairs in the 1920s?

1.Washington Naval conference:  Five power treaty (banned the construction of large warships

–        –        US, England = 5 tons of ships

–        –        Japan = 3 tons

–        –        France and Italy = 1.75 tons   

Four power treaty (respect each others territory in the Pacific, refer disputes to a conference)

Nine power treaty (was an acceptance of the open door policy).

2. Kellogg-Briand Pact: Outlawed war except in self defense.  It was signed by 14 nations, but not enforced.

3. Trade barriers: Tariffs were increased to discourage imports.  This disrupted world trade and worsened economic conditions.

World Economy:  The Germans were unable to pay their war debts, so the French began to send in troops to occupy Germany.  Dawes devised a plan for the US to pay Germany, Germany to pay and Great Britain, and France and Great Britain to pay the US.

The US also began to build factories in Europe and invest in Oil in the Middle East.

 

How did United States policy change towards Latin America?

The US Policy towards Latin America was not Isolationist. 

Previously the US had sent in troops to solve problems in the southern neighbor.  Coolidge and Hoover refrained from using force in order to protect US interests.  Hoover even agreed to withdraw troops from Nicaragua.

 

How did the United States react to Japanese aggression in China?

Japan sent troops into Manchuria (China).  The League of Nations asked Hoover to participate in an economic boycott of Japan, he refused, the League did nothing, and Japan took Manchuria and set up a puppet government.  The American people were unhappy with Japanese aggression, but did not want to get involved in a war in Asia.

 

What is an isolationist?

A person, government or nation that believes their country should not become involved in entangling alliances or agreements with other nations.

 

What is an internationalist?

A person, government or nation that believed their country should use its power to take an active role in world politics and events.

 

 

Franco – Spain – Fascist

Hitler – Germany – Fascist

Stalin – Russia – Communist

Mussolini – Italy – Fascist

 

Define Totalitarian State: (page 652)