Check these next two slides with your bubble graphs that you received as Homework last Friday!

4 other Causes to the Depression 1.Depressed Farms and Industries  Farms made no money  Industries = Under consumption  Leads to lay offs and lowered wages  Extras piling up in warehouses 2. Wealth Distribution  Rich get Richer and Poor get Poorer gap is huge

4 other Causes to the Depression 3. Monetary Policy  Federal Reserve System was regulating money and there wasn’t enough in circulation to help or save 4. Decline of Foreign Trade  US aided other nations and with no money meant the slow down of trade  High Tariffs on foreign countries to make money

Herbert Hoover’s Response to the Great Depression

Herbert Hoover’s Response  Asked businesses to not cut wages or production  Told cities and states to stimulate their economies with building projects  Farm Board = Co-op’s of farms and sell goods together, until prices rise

Herbert Hoover’s Response  Restruction Finance Corporation (RFC) = Stimulus Package  Gave billion dollars to banks, railroads, insurance companies  Why? Inspire business and create jobs  Result = Too late

Hoover’s Problems  1929 = 23,000 businesses failed  1932 = 32,000 businesses failed  Annual income =$ $ Why did peoples income only drop $700?  Unemployment 25%

Hoover’s Problems Bonus Army = WWI Vets are waiting on the White House lawn to receive payments early because of the depressionBonus Army = WWI Vets are waiting on the White House lawn to receive payments early because of the depression Some wouldn’t leave = tanks and soldiers fired on the WWI vets

Election of 1932  Landside victory for Franklin Delano Roosevelt (Democrat) over Herbert Hoover (Republican)

FDR on Election Day