Notes for Last Exam 4 04 07 2014 Domestic Immigration restriction New country Need labor US never one to restrict labor Foreign immigrants could provide it Attitude toward immigration changed First restriction 1882 US banned any immigration from chinese They poured into country before though Second 1903 US banned certain kinds of people by characteristics Banned anarchist Anarchist someone who believes no gov t is good enough Beggers Procurers Pimp Biggest 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 year English had highest Not applied to Latin America Mostly EU and Asia Allow thousands of English Germans Irish etc Reinforce ethnic makeup from US Northern and Weestern EU mainly Biggest Immigration law every till 1960 s Admitted that the law was not really fair Whole system was dropped in 1965 How admit system now Descriminated against Southern and Eastern EU countries and Africans Who has family connections here and willing to say that they would help you then you could come over and had advantage Also people with certain valueable skills Prohibition alcoholic beverages 1920 1933 Mostly to women Why would WW1 lead amerians to prohibit alcohol Not use rice corn and grain because want to save it for men women and children Miller Bud were some companies that provided alcohol Seemed patriotic how 18th amendment came along couldn t make it import it transport it sell it Not banned about drinking alcohol because couldn t really get it Rise of crime started because of the prohibition Al Capone first a godfather and then a jailbird 18th amendment gone in 1934 Powerful wave of bigotry Corruptions in Harding administration Farm depression Problems of 1920s Corruption in Harding administration Pres Harding was ladies man He was scandalous Everyone paid attentioned to what he was doing Not only Pres to have scandal o Wilson o Clinton o JFK o And more Farm Depression During WW1 Depand in EU for agricultural goods skyrocketed Prices went up Had to produce more cotton wool everything Had to buy farm machinery o Combine farm equipment Big as a dump truck Big paddle wheel at front Wheel is for cutting the stocks of grain Harvests wheat crops 2 jobs cut stocks removes grain from stocks Have bag full of rice or grains Called combine because combined 2 things When War ends EU doesn t need as much goods Price falls Farmers can t pay off loans because low prices Creates farm depression 1919 1920 10 years before depression for US Not enough money to buy and keep money going Stock Market Crash and Great Depression Definition of crash and depression Stock Market Crash Sudden drastic drop in stock prices Quick deadly blow in price of stock Every one who has stock invested goes bankrupt Matter of days October 1929 Depression Longer term phenomenon Takes years Gradual slowing down of economic activity Fewer and fewer people spend money as before Gradual slowing down of buying and selling Relationship in 1930 s Crash was precipitating factor Depression didn t cause Stock Market Crash Causes of the Crash Some serious weaknesses and cracks in foundation Buy own margin 1920 s Margin was very low 10 o Makes people buy a lot more stock than they have stock to pay for o Stock prices go up since many people where buying stock Go artificially high levels o Buy on low margin meant that many more people were buying more stock than ever before Drives prices to unreasonable level General econ not as strong as people thought it was Other reason Wild speculation Buy stock 2 ways to make money o EX buy 50 and sell for 60 in a few weeks speculating o Identify strongest companies Hold the stock Long term investment dividends Collect these investments People got crazy Smart people realize its unrealistic o Start selling your shares o People start realizing so they start selling Start in October 1929 and go quick spiral People loose all life savings Look at value of stock X 3 years later is 80 less Loss 1 3 of it s value in 2 weeks Causes of the Depression See weaknesses in economy Purchasing then put 45 degree angle up production then 45 degree angle going down People don t have enough money to buy stuff Production is going up because new technology Have to build find a place to store the things you are making Have to cut off production lay off people Widespread unemployment o Reached 28 which is terrible Above 6 is bad Farm depression makes this worse Most of profits go to people who could buy most of stock Wealthier people normally bought stock Taxes were so low that it left most profit in hands of people who wouldn t spend it Gov t never had to intervene on stuff before Depressions were used to be called panics Find 3 things about why stuff with purchasing era Last thing was high tariff Production era Laissez faire Roll of gov t Profits in 1920 s Laissez faire Insistence on balance judgement Went up 43 in the 1920 s High tariff Farming depression Gov had a laissez faire policy Get notes from april 17 2014 Banks closed Unemployment 1 6 mil 2 8 million Pres Herbrt Hoover s Response Said we just can t stand by Used fed gov t as weapon in economic crisis Voluntary help of business and unions Some increase in federal spending Building highways bridges port facilities post offices etc People have more money buy more stuff Dams Hoover dam give people jobs Reconstruction Finance Corporation Lend money to people Not lay off workers and survive Banks get money by giving loans Sometimes called trickle down approach Did save some corporations Federal loans to states Went far beyond any other pres Give him some props Best known as something that gave him a permanent stain Bonus Army 14 00 WWW1 military men went to dc Want to have parades talk to congressmen Congress said will give bonuses to military people They create slums and instant places to live in DC Looked like revolution Douglas McArthur Second in command Eisenhower People were horrified all over coutry Now he is known as a beast Bottom line not enough action or spending to end the Depression FDR The New Deal Cousin of TR He was paralyzed No one knew though First New Deal 1933 1934 be able to give examples Relief Recovery Reform Relif Help me make it through the night o Not solve depression More for humanitarian problem Recover Put the economy back on its feet o NRA National Recovery Administration Reignite econ