Chapter 14 The Great Depression Begins Problems with the Nation’s Economy Struggling Industries Railroads, mining, lumber Farming suffers after WWI Superficial Prosperity of the “Roaring Twenties” Living on Credit – Installment Plan

Hoover Wins the 1928 Election Problems with the Stock Market Speculation – high risk buying, quick profit Buying on Margin – similar to credit, high risk Black Tuesday – October 29, 1929 Stocks plummet, people sell, many stuck with huge debts. Approximately $30 Billion lost.

Financial Collapse Follows Banks not insured, close Millions of people lose their savings Businesses go bankrupt Unemployment grows to 25% Depression hits worldwide U.S. passes Hawley-Smoot Tariff Raises taxes on imported goods Designed to promote trade within

Hardships and Suffering during the Depression Homelessness Hoboes – traveling during the Depression Shantytowns and “Hoovervilles” Dust Bowl destroys farmland Children – health problems (malnutrition), little schooling, forced to work Social and psychological effects Suicide rate rises Many admitted to mental hospitals

Hoover During the Depression Belief in “Rugged Individualism” No Direct Relief Public outrage at Hoover – Many blame him for the problems Hoover establishes Federal Home Loan Bank Act and Reconstruction Finance Corporation Neither have much success “Bonus Army” destroys Hoover’s Image Boulder Dam (Hoover Dam) – great achievement