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Through Hoarding’s “return to normalcy’ policy, the pro-business ethos of the Harding-Coolidge administration and he Stock Market crash, became the turning points of the ass’s, each leading up to the Great Depression. L. The Harding-Coolidge administration adopted a “return to normalcy’ in order to fit the needs of individuals after the war. A. Andrew Mellon, Secretary of State, proposed balancing the united States budget, and tax-cutting policies for wealthy b. “Normalcy” considered higher levels of federal spending and Americans. Axes, even more than the Progressive era before World War l. Rich-quick administration became one of the most corrupt. C. Hoarding’s get- l. Get-rich-quick became the new American dream defined by possessions and the stock market. 1 . More Americans taking loans that they were not able to pay off, causing problems with banks and also the stock market itself. II. Harding- Coolidge administration and pro-business policies. A. He vetoed the McCann-Hagen Bill. It wanted to have the government purchase agricultural products for sale overseas to raise farm prices that were declining. . Coolidge fated it as government interference with the free market. B. With help from the Harding-Coolidge administration, New York bankers extended loans to European countries and gave billions of dollars to Germany. I. These foreign policies were done through private economic relations Instead of having the government Involved. C. College’s Republican policies encouraged Industry-wide agreements on polices and encouraged monopolies. L. Big Business took over small businesses and fewer Individuals controlled more power and wealth, thus causing an Increase In profits.
These increased profits were not given to workers or reinvested in businesses, but ether most all the profits were invested in the continually rising stock market. 2. The rich were getting richer and the working classes were taking home smaller paychecks, because of the inflation the profits made. Ill. On October 29, 1929, the Stock Market crashed. Banks closed, industries closed, small businesses closed and millions of people were jobless and thousands became homeless. A. Before Black Thursday, economic trouble had already risen. In Southern California and Florida, banks failed and mortgages foreclosed on undeveloped land.
Unequal distribution of Income and prolonged depression In farm areas reduced American’s purchasing power. II. Sales of cars and household goods festered, along with European demand for American goods. B. In 1932 the economy hit rock bottom and with that, a full-fledged depression took place across America. I. Thousands of families were evicted from their homes and were forced into moving Investigators revealing wrongdoings committed by bankers and stockbrokers. The outcome of the Depression was not only inevitable, but it was also predictable.
Calvin College’s polices had shifted the economic system too far, only benefiting the wealthy, and the gap between rich and working class become so clear that consumers no longer could afford to purchase products that were being made. Ere distended stock market was caused by serious inflation and the unequal distribution of income. Although it was inevitable, it came with such surprise that it destroyed many companies and reduced business and consumer confidence. In reaction to the depression, President Hoover hardly had any compassion towards the economic downturn.
Businessmen opposed federal aid to the unemployed. Most held the view that government intervention was needed to aid those that were unemployed and they believed the government should encourage Americans to rely on them for their aid. Herbert Hoover only made matters worse with the Hawley- Smooth Tariff and Americans continued to be without hope of another future. With the stock market crash and Hover’s lack of response, prosperity that once defined American’s freedom, was now largely questioned and a new definition would now need to be set in place.