TASK #1 Reviewing Tariffs and Panics in American History
Directions: Using the specific factual information provided from Chapter #12 The Second War for Independence and the Upsurge of Nationalism, please identify and discuss similar themes from the Chapter #32 The Politics of Boom and Bust
Chapter #12 "The American System"
Congress instituted the 1st protective tariff, the Tariff of 1816, primarily for protection. British companies were trying to make American factories die off by selling their British goods for much less than the American factories. The tariff placed a 20-25% tax on the value of dutiable imports. Over time, the tax price continued to rise, creating problems of no competition between companies. Due to nationalism, Henry Clay developed a plan for a profitable home market. It was called the American System. It had 3 main parts: A strong banking system, to provide easy and abundant credit; A protective tariff, behind which eastern manufacturing would flourish; A network of roads and canals. President Madison vetoed the bill to give states aid for infrastructure, deeming it unconstitutional. The Jeffersonian Democratic-Republicans were strongly opposed to building federally-funded roads because they felt that such outlets would further drain away population and create competing states beyond the mountains.
Chapter #32“Hiking the Tariff Higher “
-The Fordney-Mckinley Tariff was introduced, much like other tariffs, to protect American industry. This new tariff increased the tariff to 38.5%, thus causing havoc in Europe because the economies that were destroyed in the quagmire of World War I needed the trade with the U.S. to help restart their economies. Other European nations tried to combat these new American tariffs with their own harsher tariffs. Conditions like this only worsened the Global Depression. The London Economic Conference was organized primarily to set international trade rates and tariffs, but sadly the Franklin Roosevelt pulled the U.S. out of the negotiations and caused the Conference to collapse.
Chapter #12 “The Panic of 1819 and the Curse of Hard Times”
The Panic of 1819 was the first financial panic since President Washington took office. The main cause was the over-speculation in frontier lands. The Bank of the United States became a financial devil to western farmers because it foreclosed many farms.
Chapter #32 “ “The Great Crash Ends the Golden Twenties”
-With the "Jazz Age" of the 1920's it also came with the boom of the use of credit as a way to purchase objects that the average person would usually not be able to obtain. Particularly dangerous was the practice of buying stocks on margin. In this practice, people would call a stock-broker and give him money to invest in stocks. The reason that this practice became so popular was because someone could become rich overnight, so people were buying stocks with credit and hoping that they would profit. But when an individual started selling his stocks, everyone else started to do the same. This caused a catastrophic decline of stock prices.
TASK #2 Songs of Boom and Bust
Read the Lyrics to Blue Skies (1926) and Brother Can You Spare a Dime (1931) and then compare and contrast them. In your analysis provide specific factual information supporting the theme of both songs. In other words, what circumstances or events support the theme and tone of each song.
FOR EXAMPLE: For the song lyrics – provide specific evidence (#’s , events) that support the tone and tenor of the happy go-lucky 1920s and used evidence from the 1930s that supports the tone of the Brother can you spare a dime lyrics.
Why do people think the 20’s are about Blue skies and happy times?
-In the 1920's there were "Blue Skies" because a majority of the population were happy to be out of WWI and rejoicing there new freedoms, like women's right to vote.
What is so great about the 20’s that has every one singing about “Blue Skies”
-The Harlem Renaissance
-19th Amendement (Women's right to vote)
-New technology like automobiles, telephones, and electricity.
Why does that attitude shift in the 1930’s? Why are people looking for handouts?
-The Stock Market crash of 1929 caused a ripple affect throughout the nation. Now the economy was floundering and President Hoover had a mentality of waiting it out and Laissez-faire.
Why has the tone gone from Blue Skies to dark clouds?
-The floundering economy caused enemployement rates to increase dramatically, up to 1 out of every 4 was enemployed.
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