The Great Depression Chapter 14

The Nation’s Sick Economy 14.1 I. Economic troubles on the horizon A. Industries in trouble B. Farmer’s need a lift 1. Price-supports were used in an effort to curb the financial loss farmers were suffering, Congress tried to pass the McNary-Haugen bill, which would have mandated this on key crops

The Nation’s Sick Economy C. Consumers have less money to spend D. Living on credit 1. Credit is an arrangement in which consumers agree to buy now and pay later for purchases, often on an installment plan that includes interest charges D. Uneven distribution of income

Hoover becomes President II. Hoover takes the nation A. The Election of Herbert Hoover, Republican won the presidential election of Alfred E. Smith: Democrat who lost the presidential election of 1928

Dreams of Riches in the Stock Market 1. Dow Jones Industrial Average is the name of the most widely used measure of the stock market's health 2. Speculation refers to making extremely risky business transactions on the chance of making quick or considerable profits. 3. Buying on margin refers to paying a small percentage of a stock's price as a down payment and borrowing the rest.

Stock Market Crashes A. Black Tuesday specifically refers to the stock market crash of October 29, 1929.

The Great Depression IV. Great Depression is the period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed A. Banks and business failures

The Great Depression B. Worldwide shock waves 1. Hawley-Smoot Tariff Act reduced the flow of goods into the United States and prevented other countries from earning American currency to buy American exports. C. Causes of the Great Depression 1. Tariff and war debt policies. 2. Crisis in the farm sector 3. The availability of easy credit 4. Unequal distribution of wealth

Hardship and Suffering During the Depression 14.2 I. The Depression devastates people’s lives A. The Depression in the cities 1. During the Great Depression the outskirts of cities most where you were likely to find shantytowns Shantytowns, a.k.a. “Hoovervilles”

The Great Depression 2. During the Great Depression soup kitchens provided free or low-cost food 3. Bread lines were lines of people waiting to receive food provided by charitable organizations

C. The Depression in rural areas D. The Dust Bowl 1. The Great Plains became known as the Dust Bowl

II. Effects on the American family A. Men in the streets 1. At the beginning of the Great Depression, some cities and charity services were the main sources of direct relief B. Women struggle to survive C. Children suffer hardships

D. Social and psychological effects 1. Malnutrition 2. Starvation 3. Increased rates of suicide

Hoover Struggles with the Depression, 14.3 I. Hoover tries to reassure the nation A. Hoover’s response to the Stock Market Crash of 1929 and Depression was: 1. A cautious approach 2. He believed in “rugged individualism“ 3. He directed federal funds into public-works projects 4. Urged key business and labor leaders to find solutions and to act in ways that would not make the economic situation worse

B. Boulder Dam 1. Boulder Dam, now called Hoover Dam became the world's tallest and second largest dam, providing the region with electricity, flood control, and a regular water supply C. Democrats win in 1930 congressional elections

Hoover Dam

II. Hoover takes action A. Hoover backs cooperatives B. Direct intervention 1. Congress passed the Federal Home Loan Bank Act to lower mortgage rates for homeowners and allow farmers to refinance their loans

III. Gassing the Bonus Army A. The Patman Bill denied 1. The Patman Bill was intended to pump new life into the economy by providing emergency financing to various types of large or big businesses.

The Bonus Army B. Hoover disbands the Bonus Army 1. Hoover's image suffered when he ordered the forced removal of 2,000 members of the Bonus Army (World War I) veterans who had built a shantytown within sight of the Capitol building