 Herbert Hoover

 America's 31st president, took office in 1929, the year the U.S. economy plummeted into the Great Depression.  Hoover bore much of the blame in the minds of the American people.

Bull Market

 When the stock market has an upward trend in stock prices  Caused by heavy buying of stocks

Bear Market

 When the stock market has a downward trend in stock prices  Caused by heavy selling of stocks

Margin buying

Sell Here Buy Here

Margin buying  The practice of buying stocks with borrowed money  Speculators could purchase stocks with as little as a 10% down payment (10% margin)  This meant people could borrow as much as 90% of the price paid for stocks

Black Thursday

 October 24, 1929  Day when nervous stockholders began selling their stocks  This dumping of stocks lowered the price of the stock since there was a large supply available  Caused a panic where many began dumping stocks - 12 million shares changed hands

Black Tuesday

 October 29, 1929  Stock prices sink to a new low with panic selling occurring again  More than 16 million shares changed hands

Gross National Product

 The total value of all goods and services produced in a given year  Pre-depression highs reached $103 billion (1929)  Depression lows sank to $56 billion (1933)

Bank Failures

 Many banks lost a significant amount in the stock market crash  Borrowers began defaulting on their loans  People began withdrawing their savings from banks because they had no faith in the banks  More than 5,000 banks closed between 1930 and 1932

Great Depression

 Worldwide and deep economic downturn that gripped the U.S. from 1929 until the beginning of WWII in 1939  Made the U.S. economically vulnerable  Changes relationship between federal government and citizens  Now, the federal government took a much more active role in people’s lives

Business cycle

 The ups and downs of business in a free- enterprise system  Prosperous time include more people working and more production  Surpluses build up, leading to laid off workers  This creates a recession or depression until the surpluses are sold, then the cycle repeats

Widespread unemployment

 Unemployment reached 25% during the Great Depression

 Deportation and Repatriation

 Widespread unemployment increased pressure to deport non-Americans to decrease competition for jobs  500,000 Mexicans were deported in the early 1930’s  The Mexican Repatriation refers to a mass migration that took place between 1929 and 1939,  People of Mexican descent were forced return to Mexico.

Breadlines

 A place where soup and bread are served to the poverty stricken people  Operated by charitable organizations  Provided the poor with meals they could not afford to eat

Shantytowns

 A collection of makeshift shelters  Built with cardboard, scrap lumber, and any other thrown away material that could be found  “Hoovervilles”

Rugged individualism

 Herbert Hoover’s idea that success comes from individual effort and private enterprise  Believed that the government should stay out of economic problems  Believed private charities and local communities could best provide for those in need

Bonus Army

 A group of World War I veterans that were unemployed  Asked for the pension they were promised early  Marched on Washington to seek support from a bill to provide these bonuses early

Hoover’s Accomplishments

 Back door diplomacy.  Known as the “Do nothing” president.  Reconstruction Finance Corporation – gave emergency loans to banks and businesses  As Hoover later proudly proclaimed: It was a "program unparalleled in the history of depressions in any country at any time." Hoover’s Accomplishments

Franklin D. Roosevelt

 The Democratic representative for President in the 1932 election  Promised America a New Deal to solve the depression  Overwhelmingly won the election 472 electoral votes to 59 for Hoover  Became President in March 1933

 1. Identify who Franklin D. Roosevelt was?  2. Describe what rugged individualism was?  3. Explain what the Great Depression was and how it impacted America?  4. Describe what a Shantytown was?  5. Explain what a Bull Market is?  6. Identify what Gross National Product is?  7. Explain what breadlines were?  8. Describe what the Bonus Army was?