CHAPTER 24 The Great Depression, 1927 - 1933 Web

The Election of 1928 Herbert Hoover campaigns as self-made man The Great Engineer, the Boy Wonder both run the Food Administration in America following the war; and served as Secretary of Commerce under two presidents Alfred Smith loses, mostly because of his Catholicism and anti-Prohibition stance As governor of New York, he had championed moderate social welfare policies, administrative efficiencies, and public works

Hoover wins landslide victory, in part due to prosperity of country breakup of the “Solid South” in voting Stock Market rose 109 points in one year

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The Stock Market Crash of 1929 Crash of October 1929 Negative economic factors Land prices collapsed Corporations too dependent on stocks to raise cash Crash had additional causes Risky ventures for quick profits “margin” trading: practice that allowed an investor to buy stock on credit lack of government control

Black Thursday: day the stock market crashed More Americans had been investing, often with little knowledge 16 million shares changed hands Gross national product went from 88 to 76 billion

The Great Depression Factors of the depression Vastly unequal distribution of wealth: 80% did not have any savings Poor agriculture: overproduction, falling prices European loans: could no longer make payments on those loans

Congress made unsuccessful attempts to deal with crisis no government programs in place to ease the situation Smoot-Hawley Tariff: raised custom duties to high levels Made it difficult for European nations to sell goods in US. Depression closes thousands of businesses and left millions unemployed By the end of 1930, 16 percent were unemployed.

Hoover’s Programs to Fight the Depression Hoover made wide use of presidential power National Credit Corporation: private agency would underwrite banks that had failed and would safeguard their deposits President’s Organization of Unemployment Relief: organization was a presidential committee designed to coordinate volunteer relief efforts for the unemployed Unemployed face discrimination Blacks, women, and Native Americans faced hardships

Mexican Population in the United States, 1930

Farmers’ situation became desperate Agricultural Marketing Act: created a Federal Farm Board that was to stabilize farm prices. Homelessness and dissatisfaction with government increased Hoovervilles: Great Depression-era shantytowns Hoover Flag: wearing your pants with the pockets turned inside out Movies and music offer small amount of comfort Soap operas, movies, and swing music Amos ‘n’ Andy: popular radio program emphasized the stereotypes of African-Americans

A Darkening World Hoover came to White House with definite policy Good Neighbor Policy: withdrew Marines from Nicaragua and Haiti London Treaty of 1930: sponsored promoted more American investment in Europe

League of Nations unable to do anything when Japan invaded Manchuria they had bombed one of their own railroads to give them the pretext of protecting their property direct violation of Nine Power Treaty, Open Door Policy Hitler and Mussolini begin menacing in Europe National Socialists: Adolf Hitler – a follower of Benito Mussolini

Japanese Invasion of Manchuria ©2004 Wadsworth, a division of Thomson Learning, Inc. Thomson Learning™ is a trademark used herein under license. Japanese Invasion of Manchuria

A Political Opportunity for the Democrats Democrats capitalized on economic depression Franklin D. Roosevelt (FDR) Polio left legs paralyzed Married to TR’s niece Eleanor FDR pledges “New Deal” for Americans

Bonus Army damages Hoover’s re-election World War I veterans who marched on Washington to lobby for immediate cash payments of their veterans’ bonuses Douglas MacArthur, troops razed the camps of the bonus marchers in Anacostia Flats Scottsboro boys: a group of African American men who were unjustly accused of raping 2 white women in Alabama. FDR defeats Hoover: haunted by his role in Great Depression Depression worsens during interim period

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Discussion Questions What were the causes of the Great Depression? What programs did Herbert Hoover implement to deal with the depression? What was the role of economic hardship in the rise of authoritarian powers such as Germany and Japan? What was FDR’s approach to dealing with the Great Depression? What did he do in his early administration to instill Americans with hope?