The Coming of the Great Depression

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Hoover’s Response to the Great Depression

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Presentation transcript:

The Coming of the Great Depression No one factor caused the Great Depression. Suite of factors building up throughout the 1920s The Stock Market Crash was the “last straw,” not the sole cause

Factors Leading to the Depression Laissez faire Politics dominate the 1920s Calvin Coolidge Warren G. Harding Herbert Hoover “the business of the country is business”

Factors Leading to the Depression Overproduction and Underconsumption Credit, debt, and “installment” buying Ponzi (pyramid) schemes and other fraudulent deals The Banking Crisis The Dust Bowl The Stock Market Crash

The Dust Bowl

The Dust Bowl

The Dust Bowl

Rural Poverty Migration West

“Migrant Mother”

Urban Poverty

Hoover’s Reactions “voluntary cooperation” Reconstruction Finance Corporation (RFC) Hawley-Smoot Tariff The Dawes Plan Goal: $ invested into country, boosting economy Reality: $ used to repay debts without investment into economy; sterile capital

The Bonus March WWI Veterans, having lost everything, petitioned Congress for the early payment of their WWI bonuses.

The Bonus Army

“Hooverville” at Anacostia flats

When Congress adjourned for the year without granting the bonuses, Hoover ordered the D.C. police to evict the veterans The D.C. police refused, and Hoover ultimately called out the U.S. Army to remove the Bonus Marchers

While Hoover took full responsibility and apologized, it was the final straw for his chances at re-election.