Domestic:Immigration restrictionNew countryNeed laborUS never one to restrict laborForeign immigrants could provide itAttitude toward immigration changedFirst restriction 1882US banned any immigration from chineseThey poured into country before thoughSecond 1903US banned certain kinds of people by characteristicsBanned anarchistAnarchist – someone who believes no gov’t is good enoughBeggersProcurersPimpBiggest one 1924:Set quotas for each nation of world(ex: can send 1,400 people per year from your country)Based on how many people have come from the world and based on their population now is how many they can have a yearEnglish had highestNot applied to Latin AmericaMostly EU and AsiaAllow thousands of English, Germans, Irish etc.Reinforce ethnic makeup from USNorthern and Weestern EU mainlyDescriminated against Southern and Eastern EU countries and AfricansBiggest Immigration law every till 1960’sAdmitted that the law was not really fairWhole system was dropped in 1965How admit system nowWho has family connections here and willing to say that they would help you then you could come over and had advantageAlso people with certain valueable skills Prohibition (alcoholic beverages)1920-1933Mostly to womenWhy would WW1 lead amerians to prohibit alcoholNot use rice, corn, and grain because want to save it for men, women and childrenMiller, Bud were some companies that provided alcoholSeemed patriotichow 18th amendment came alongcouldn’t make it, import it, transport it, sell itNot banned about drinking alcohol because couldn’t really get itRise of crime started because of the prohibitionAl Capone (first a godfather and then a jailbird)18th amendment gone in 1934Powerful wave of bigotryCorruptions in Harding administrationFarm depressionProblems of 1920s:Corruption in Harding administrationPres. Harding was ladies manHe was scandalousEveryone paid attentioned to what he was doingNot only Pres. to have scandalWilsonClintonJFKAnd moreFarm DepressionDuring WW1Depand in EU for agricultural goods skyrocketedPrices went upHad to produce more cotton, wool, everythingHad to buy farm machineryCombine – farm equipmentBig as a dump truckBig paddle wheel at frontWheel is for cutting the stocks of grainHarvests wheat crops2 jobscut stocksremoves grain from stocksHave bag full of rice or grainsCalled combine because combined 2 thingsWhen War ends EU doesn’t need as much goodsPrice fallsFarmers can’t pay off loans because low pricesCreates farm depression 1919-192010 years before depression for USNot enough money to buy and keep money goingStock Market Crash and Great Depression:Definition of crash and depressionStock Market CrashSudden drastic drop in stock pricesQuick deadly blow in price of stockEvery one who has stock invested goes bankruptMatter of daysOctober 1929DepressionLonger term phenomenonTakes yearsGradual slowing down of economic activityFewer and fewer people spend money as beforeGradual slowing down of buying and sellingRelationship in 1930’s:Crash was precipitating factorDepression didn’t cause Stock Market CrashCauses of the Crash:Some serious weaknesses and cracks in foundation:Buy own margin1920’s Margin was very low 10%Makes people buy a lot more stock than they have stock to pay forStock prices go up since many people where buying stockGo artificially high levelsBuy on low margin meant that many more people were buying more stock than ever beforeDrives prices to unreasonable levelGeneral econ not as strong as people thought it wasOther reason:Wild speculationBuy stock 2 ways to make moneyEX: buy $50 and sell for $60 in a few weeks (speculating)Identify strongest companiesHold the stockLong term investment & dividendsCollect these investmentsPeople got crazySmart people realize its unrealisticStart selling your sharesPeople start realizing so they start sellingStart in October 1929 and go quick spiralPeople loose all life savingsLook at value of stock X -> 3 years later is 80% lessLoss 1/3 of it’s value in 2 weeksCauses of the Depression:See weaknesses in economy:. then put 45 degree angle up (production) then 45 degree angle going down (Purchasing)People don’t have enough money to buy stuffProduction is going up because new technologyHave to build/find a place to store the things you are makingHave to cut off production/lay off peopleWidespread unemploymentReached 28% which is terrible. Above 6% is badFarm depression makes this worseMost of profits go to people who could buy most of stockWealthier people normally bought stockTaxes were so low that it left most profit in hands of people who wouldn’t spend itGov’t never had to intervene on stuff beforeDepressions were used to be called panicsFind 3 things about why stuff with purchasing eraLast thing was high tariffProduction eraLaissez faireRoll of gov’tProfits in 1920’sLaissez faireInsistence on balance judgementWent up 43% in the 1920’sHigh tariffFarming depressionGov. had a laissez faire policyGet notes from april 17,2014Banks closedUnemployment -> 1.6 mil – 2.8 millionPres. Herbrt Hoover’s Response:Said we just can’t stand byUsed fed gov’t as weapon in economic crisisVoluntary help of business and unions:Some increase in federal spending:Building highways, bridges, port facilities, post offices etc.People have more money buy more stuffDams -> Hoover damgive people jobsReconstruction Finance Corporation:Lend money to peopleNot lay off workers and surviveBanks get money by giving loansSometimes called trickle down approachDid save some corporationsFederal loans to statesWent far beyond any other pres.Give him some propsBest known as something that gave him a permanent stain -> “Bonus Army”14,00 WWW1 military men went to dcWant to have parades, talk to congressmenCongress said will give bonuses to military peopleThey create slums and instant places to live in DCLooked like revolutionDouglas McArthurSecond in command -> EisenhowerPeople were horrified all over coutryNow he is known as a beastBottom line: not enough action or spending to end the DepressionFDR: The New DealCousin of TRHe was paralyzedNo one knew thoughFirst New Deal (1933-1934) (be able to give examples)Relief-Recovery-ReformRelif: “Help me make it through the night”Not solve depressionMore for humanitarian problemRecover: Put the economy back on