The making of a Superpower USA - Politics (1920-1933)

Who won the 1920 election?

Harding - 60.3% of the popular vote (landslide win)

What did the 1921 Budget and Accounting Act do?

Made government departments present budgets for presidential approval

Who did Harding appoint Secretary of Treasury in 1921?

Andrew Mellon

What is the impact of the 1921 Budget and Accounting Act?

Budget decreased from $5 billion in 1920 to $3.3 billion in 1922

What did Coolidge believe in?

Laissez Faire

What did Hoover believe in?

Rugged individualism, Laissez Faire, the American Dream + Charity

What was Wilson criticised for?

Not doing enough during the Great Depression

What did the 1930 agricultural marketing act do?

Government leant money to farmers to stabilise prices + to ensure all crops were sold at a profit

Was the 1930 agricultural marketing act a success?

No, it failed as Hoover was paying farmers artificially high prices + tariffs reduced foreign trade

What did the 1930 Grain Stabilisation Corporation do?

Tried to guarantee fair prices by buying wheat + storing it until the prices rose again

What was the impact of the 1930 Grain Stabilisation Corporation?

It ultimately failed as prices continued to plunge

What was trickle down economics?

This was when Hoover encouraged big business to continue operating + to not lay off staff so their profits would trickle down society

How much money did Hoover send in relief?

$500 million

What was the impact of the 1930 Hawley-Smoot tariff?

It aimed to protect US farmers but as it was the highest level of tariffs other countries retaliated - US imports + exports from Europe fell by 2 / 3 between 1929 and 1932

What was the impact of the 1932 Bonus Marches?

Hoover refused to help veterans even though it would have cost $2.3 million, sent troops to deal with 5,000 protesters which resulted in 100 injured + a baby dying, proving that Hoover did not care

Who won the 1932 election?

Roosevelt - 57% of the popular vote

What were the impacts of the 1922 Teapot Dome scandal?

Biggest scandal before watergate - affected Harding’s health + SCOTUS and Congress intervened

What was the impact of the 1921 Federal Highway Act?

10,000 miles of highway built per year by 1929 - break from Laissez Faire as central government controlled road building

Why was the 18th amendment (prohibition) passed in 1919?

Groups opposed alcohol consumption - Ford argued it lowered efficiency + Wilson banned beer production in 1918 (Kaiser’s brew)

Why did prohibition fail?

Only 5% of illegal alcohol was intercepted

Why did Roosevelt end prohibition in 1933?

Legal alcohol production would create jobs + taxes on alcohol could help combat depression

What did the Agricultural Adjustment Agency (AAA) do?

Gave government subsidies to farmers to reduce acreage + production voluntarily

What was the Tennessee Valley Authority?

An agency created to harness the power of the river Tennessee (ran through 7 poorest states in US)

What did the TVA aim to do?

Develop 20 dams + other ecological schemes (e.g. tree planting)

What did the 1932 EBRA do?

Gave treasury power to investigate all banks that were close to collapse

What did the 1930 NRA do?

Oversaw industrial recovery, suspended anti-trust acts for 2 years + introduced codes of practice

What did the Civil Works Administration do?

Was granted $400 million from PWA to provide emergency relief to unemployed (1933-1934)

What did the Federal Emergency Relief act do?

Divided $500 million among the states to help unemployment + the government would pay $1 for every $3 it spent

Was FERA successful?

Opposition limited its success, paying $25 per month in 1935 but the average income was $100 + 30% of African Americans received it vs 10% of white people