Herbert Hoover, Republican,

Slides:



Advertisements
Similar presentations
1920s BOOM! To BUST. What your Author Says: In November 1932, voters turned to the Democratic Party and its leader, Franklin Roosevelt. This set the stage.
Advertisements

Stock certificate. “Black Tuesday” headline (October 29, 1929)
11:1 Causes of the Great Depression Election of 1928
Bellringer 12/16 Credit lead to an unnatural demand for goods. This resulted in _____production. What were bank “runs”? How did buying on margin help lead.
 Big Win  Promised continued prosperity  Popular with both parties  Weakness----  Timing!!!!! (Crash of ‘29)
President Hoover & the Great Depression. Warm-up Look back at your timeline. When was President Hoover elected? What major events happened during his.
The Election of 1932 To analyze the effects of the great depression and how it led to a shift in political parties.
 Republican Herbert Hoover (Quaker) VS.  Democrat Alfred E. Smith (Catholic) Three P’s:  Prosperity  Prohibition- Hoover “dry” Smith “wet”  Protestantism.
Good Morning, Please pick up the handout on the table QUIZ WEDNESDAY ON THE CAUSES OF THE GREAT DEPRESSION.
The Great Depression. Causes: Economy is out of balance Americans are increasingly in debt Speculation Overproduction Tight-money supply to control credit.
The Nation’s Sick Economy What caused the economy to go bad at the end of the 1920s?
The 1920s 1)The 1920s became known as the “Jazz Age” Louis Armstrong.
Chapter 14 Section 1 Notes The Election of 1928 Herbert Hoover (Republican) versus Alfred E. Smith (Democratic) Hoover: Served as Secretary of Commerce.
Causes of the Stock Market Crash of 1929
Agenda 3/9/10 Go over time line Go over 9.1 Study Guide/ lecture notes
The Great Depression & New Deal,
Roots of the Great Depression
Causes of the Great Depression
THE GREAT DEPRESSION Economic Causes.
Why Hoover failed to deal with depression
Standard and Objective
THE GREAT DEPRESSION Sec Pages
The Causes of the Depression
Hoover and the Depression
Hoover’s Handling of the Hardship
The Great Depression.
Chapter 25-1 By: Ian VandenBrooks.
The Great Depression Begins
Herbert Hoover, Republican,
Bell Work 1. What was your experience in the Stock Market game like?
Chapter 9 The Great Depression
Causes of the Depression/The Stock Market Crash Topic 5.1
The Great Depression Chapter 12 Vocab – 15 words.
The Nation’s Sick Economy
President Hoover ESSENTIAL QUESTION: Why was Herbert Hoover unable to cope with the Great Depression?
Chapter 14 The Great Depression Begins
The Great Depression: Causes and Effects
The Great Depression.
The Great Depression Begins
The Causes of the Depression
THE GREAT DEPRESSION Economic Causes.
Objectives Discuss the weaknesses in the economy of the 1920s.
Great Depression Hoover to Roosevelt.
The Nation’s Sick Economy
Today’s Question 1. What were the four (4) major causes of the Great Depression.
THE GREAT DEPRESSION AND THE NEW DEAL Cause and Effect
Hoover and the Stock Market Crash
The Nation’s Sick Economy
Section 1 The Nation’s Sick Economy
The Great Depression Chapter 9 – Section 1.
Jeopardy Vocabulary Causes of the G.D. Impact of G.D. New Deal
Great Depression and Its Causes
VUS10.c Hardships of The Great Depression.
Causes of the Great Depression
Black Tuesday Stock Market Crash October 29, 1929 Result not Cause
Great Depression USH-6.3.
Objectives Discuss the weaknesses in the economy of the 1920s.
Hoover Responds to the Great Depression
Causes of the Great Depression
The Great Depression
World Wide Depression WWII Notes.
America is Ready for a Change
What caused the greatest economic crisis in American history?
The Road to the Depression
The Great Depression … of 1921
Hoover and FDR: The Election of 1932
Mother of Seven by Dorthea Lange
USHC- 6.3a Explain the causes and consequences of the Great Depression, including the disparities in incomes and wealth distribution; the collapse of the.
Chapter Some Questions Like No Way!
Great Depression USH-6.3.
Presentation transcript:

Herbert Hoover, Republican, 1929-1933 How did President Hoover react to the stock market crash on Wall Street? Well, he was a mining engineer . . . As every mining engineer knows, mining is a risky business. It is inherently dangerous. Miners die in roof falls, fires, explosions, and are asphyxiated by methane gas. And as every stockbroker knows, the stock market is a risky business. It is inherently risky. It is a form of gambling - and investors risk losing their shirts everyday. So President Hoover regarded the stock market crash as the equivalent of a mine explosion. Horrible, but inevitable.

Predicting the Past – Warm Up What did President Hoover do for Wall Street? What did he do for Main Street?

Five Wrong Actions – and one right action

The Budget Hoover balanced the budget. He cut government spending.

Taxes Hoover raised taxes. In 1932, the Republicans raised taxes: To balance the budget, President Hoover raised taxes. Back then, only the rich (1%) and the tiny middle class (15%) paid taxes. The working class (84%) paid no income taxes at all. In 1932, the Republicans raised taxes: The top tax rate was raised from 25 to 63%. In 1936, the Democrats raised taxes: The top tax rate was raised to 79%.

Tariff Hoover raised tariffs Europe stopped buying U.S. goods In 1930, the Hawley-Smoot Tariff was the highest tax on imports in U.S. history. This tariff helped spread the Great Depression to Europe. The high protective tariff produced retaliatory tariffs in other countries, strangling world trade. Europe stopped buying U.S. goods From 1929 to 1932, international trade fell by 67%.

Gold Standard Hoover remained on the gold standard A shortage of money Every dollar bill was backed by gold in the U.S. Treasury. As a result, the federal government could not print more money than there was gold. A shortage of money From 1929 to 1932, the money supply contracted by 30%. Businesses could not get bank loans, so they went bankrupt.

The Interest Rate Hoover raised the interest rate A shortage of money Under Hoover, the Fed raised the prime interest rate. A shortage of money From 1929 to 1932, the money supply contracted by 30%. Businesses could not get bank loans, so they went bankrupt.

One Right Action! There is one thing the President Hoover did right: The RFC. That program constituted “government intervention in the economy.”

The Reconstruction Finance Corporation (RFC) In 1932, three years into the Depression, President Hoover finally did something that was right. He launched the Reconstruction Finance Corporation (RFC). This was the only law that President Hoover and the Republican Congress ever passed to deal with the Great Depression.

Federal Spending Under the RFC, President Hoover and the Republican Congress decided to bail out Big Business. The federal government loaned $2 billion to banks, insurance companies, and railroads. The federal government also loaned money to states overwhelmed with the needy. But it was too little, too late . . . By 1932, many businesses had already gone bankrupt.

Herbert Hoover, Republican, 1929-1933 President Hoover was the scapegoat for the Great Depression. Right or wrong, the American people blamed him. When the unemployed lived in makeshift communities of cardboard shacks down by the railroad tracks, they nicknamed them “Hoovervilles.”

What happened to Herbert Hoover after he left the White House? Predicting the Past – Exit Ticket What happened to Herbert Hoover after he left the White House?