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15. The roaring 20s

It was the age of Prohibition: 1920- a constitut. Amendment outlawed the sale of alcoholic production, the age of jazz and silent movie. For business it was golden ages.

Under Republican President Warren G. Harding, who called for normalcy and an end to high wartime taxes, Secretary of the Treasury Andrew Mellon raised the tariff, cut other taxes, and used the large surplus to reduce the federal debt by about a third from 1920 to 1930. Secretary of Commerce Herbert Hoover worked to introduce efficiency, by regulating business practices. This period of prosperity- the Roaring Twenties. The rapid growth of the automobile industry stimulated industries such as oil, glass, and road-building. Tourism soared and consumers with cars had a much wider radius for their shopping. Small cities prospered, and large cities had their best decade ever, with a boom in construction of offices, factories and homes. The new electric power industry transformed both business and everyday life. Telephones and electricity spread to the countryside. Millions migrated to nearby cities. However, in October 1929, the stock market crashed and banks began to fail in the Wall Street Crash of 1929.

16. The great depression.

“The black Thursday” October 29, 1929. –led to deflation and a great increase of unemployment(from 3%-25%). 1000 of Am. banks had failed. Wages had decreased 60 %.

Great Depression economic downturn which started in 1929 and lasted through most of the 1930s. It centered in North America and Europe, Farmers and rural areas suffered. Mining and logging areas were perhaps the hardest hit. Many people found investment in the stock market attractive during the economic boom. In terms of the 1929 small downturn, historians emphasize structural factors and the stock market crash, while economists point to Britain's decision to return to the Gold Standard at pre-World War I parities. Although some believe the Wall Street Crash of 1929 was the immediate cause triggering the Great Depression, there are other, deeper causes that explain the crisis. The vast economic cost of World War I weakened the ability of the world to respond to a major crisis. Inflation rates to boom. The debts grew.

1929- President Franklin D. Roosevelt and his “New deal for the American people”.

17. President Franklin d. Roosevelt and his “New deal for the American people”

was the 32nd President of the United States. During the Great Depression of the 1930s, Roosevelt created the New Deal to provide relief for the unemployed, recovery of the economy, and reform of the economic system. His most famous legacies include the Social Security system and the regulation of Wall Street. The strongest legacy of the New Deal was to make the federal governm. a protector of interest groups and a supervisor of competition among them. His aggressive use of an active federal government reenergized the Democratic Party. Roosevelt built the New Deal coalition that dominated politics into the 1960s. He and his wife Eleanor Roosevelt remain touchstones for modern American liberalism. The conservatives fought back, but Roosevelt consistently prevailed until he tried to pack the Supreme Court in 1937. Thereafter, the new Conservative coalition successfully ended New Deal expansion, as well as many programs like the WPA, particularly when World War II started. First term, 1933-1937. First New Deal, 1933-1934. "The only thing we have to fear is fear itself." The very next day he announced a plan to allow banks to reopen, Reform of the economy, cutting the regular federal budget. He reduced spending on research and education. Second New Deal, 1935-1936. challenged the business community, changes to the income tax. On December 7, 1941, the Japanese attacked the U.S. fleet at Pearl Harbor.4 terms to 1945. Key to Roosevelt's reforms was a belief that poverty usually resulted from social and economic causes rather than from failed personal morals.

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