8-5: The Great Depression, 1929-1930s

Thematic Learning Objectives WXT 2.0 Explain how patterns of exchange, markets, and private enterprise have developed, and analyze ways that governments have responded to economic issues. MIG 2.0 Analyze causes of internal migration and patterns of settlement in what would become the United States, and explain how migration has affected American life.

Key Concept Growth expanded opportunity, while economic instability led to new efforts to reform U.S. society and its economic system.

Causes and Effects of the Depression, 1929-1933 Wall Street Crash Overspeculation—investments made with borrowed money Buying on margin Overpriced stocks led to massive selloffs Stock prices rapidly declined in October 1929

Causes and Effects of the Depression, 1929-1933 Causes of the Great Depression Uneven distribution of income Stock market speculation Excessive use of credit Overproduction of consumer goods Weak farm economy Failure of the Federal Reserve Dislocations in global trade

Causes and Effects of the Depression, 1929-1933 Business failures Bankruptcies Run on the banks Loss on confidence in the market Reduction in manufacturing Decline in investment Workers idle—25% unemployment Internal migration

Hoover’s Policies Philosophy Responding to a Worldwide Depression Depression natural occurrence Recovery dependent on business community and private charities Responding to a Worldwide Depression Hawley Smoot Tariff (high) World trade declined by 40% Debt moratorium for Germany

Hoover’s Policies Domestic Programs Despair and Protest Hoovervilles Reconstruction Finance Corporation Federal loans to private businesses Federal loans to state/local governments Despair and Protest Hoovervilles Migrations Unrest on the Farms Dust Bowl Farm Holiday Bonus Army

Hoover’s Policies Election of 1932 Candidates Results Hoover—continuation of policies Roosevelt New Deal Government aid to unemployed Bold, persistent experimentation Repeal of Prohibition Results