The 1930’s/ The Great Depression 1. FITB Notes & Videos 2. Vocab/Key terms 3. Wrap up 20s notes chart from last class, if needed. Next class: Test Review  REMEMBER to bring your packet back to class!!

A. President Hoover : “Good times will continue!” B. Unions began to decline II. People were getting rich by investing in the stock market 1. Less government regulation, Optimistic atmosphere 2. Buying on margin

A. Buying on credit B. “Get rich quick ” attitudes C. Too many goods, too little demand D. Wealth concentrated in too few hands

A. Oct. 24, 1929, Black Thursday B. Oct. 29, 1929, Blacker Tuesday

A. Widespread panic B. Suicides C. Bank closings ( weak Federal Reserve System ) D. Domino effect

A. Hoover’s “ hands off ” approach B. Hawley-Smoot Tariff – strangled international trade C. The Dust Bowl

The Hawley-Smoot Act/Tariff LOL:

A protective tariff is a tax on imports that is so high that Americans cannot afford to buy foreign goods. After the 1929 stock market crash, Congress attempted to help American business by passing the Tariff Act of 1930, which was popularly called the Hawley-Smoot Act (or Hawley-Smoot Tariff).

Since the Hawley-Smoot Act was a protective tariff that set the highest tariff rates in American history, historians now believe it actually had the opposite effect from what Congress intended. Instead of helping business by encouraging Americans to buy American-made goods, the Hawley-Smoot Act encouraged foreign countries to retaliate (strike back) by passing high tariffs of their own. This meant that foreigners could not afford to buy American goods.

The erection of tariff barriers by all of the world’s major industrial powers strangled world trade. This decrease in world trade deepened the worldwide depression.

In summary, high protective tariffs that produced retaliatory tariffs in other countries led to a strangling of world trade. Most notable was the Tariff Act of 1930 (popularly known as the Hawley-Smoot Act). This was another cause of the Great Depression.

Discussion—Hoover’s hands-off approach – right or wrong? ? ?

A. House foreclosures B. Creation of Hoovervilles 1. Hoover blankets 2. Hoover flags

A. Riding the rails B. Hitchhiking C. Job rumors

A. Soup kitchens B. Apple sales C. Fear of revolt

The 1930’s; The Great Depression The New Deal Era

A. Hoover vs. Franklin Delano Roosevelt (FDR) B. Hoover- hated by public! C. FDR promises Americans a “ New Deal” 1. “Happy days are here again” 2. “The only thing we have to fear is fear itself” 3. Fireside Chats

A. Changes the role of government ; more helpful to the public B. Relief, recovery, and reform

The New Deal followed a three-pronged strategy, often called the “three R’s.” These three R’s were relief, recovery and reform.

1. Bank holiday – banks shut down 4 days st Amendment 3. NRA; National Recovery Administration

1. Too much government involvement

*** This would have given FDR the power to add up to 6 more justices to the Supreme Court (from 9). If he had been able to appoint them, he would always have his way with the Supreme Court!

A. Programs that help alleviate the effects of the Great Depression B. Aimed at relief, recovery, and reform