1. Chapter 14 Section 1 Notes The Election of 1928 Herbert Hoover (Republican) versus Alfred E. Smith (Democratic) Hoover: Served as Secretary of Commerce under both Harding and Coolidge A mining engineer from Iowa A had NEVER run for public office Was very quiet and reserved Alfred E. Smith: A career politician Served 4 terms as governor of New York Personable and enjoyed the spotlight

2. Chapter 14 Section 1 Notes The Election of 1928 Hoover had one major advantage: he could point to 8 years of prosperity under Republican leadership Hoover declared, “We in America are nearer to the final triumph over poverty than ever before.” Hoover wins an overwhelming victory and becomes the 31 st President

3. Chapter 14 Section 1 Notes Bank and Business Failures After the stock market crash, many people panicked They began to withdrew their money from banks Unfortunately many banks did not have the money to give back to people (it had been invested in the SM) By 1933 11,000 banks had failed Millions of Americans had lost their savings accounts (banks accounts were not insured)

4. Chapter 14 Section 1 Notes Bank and Business Failures Between 1929 and 1932 the GDP was cut nearly cut in half ($104 billion to $59 billion) About 90,000 businesses went bankrupt As the economy plunged downward, millions of workers lost their jobs Unemployment jumped from 3% (1929) to 25% (1933) Those that kept their jobs faced pay cuts and reduced hours

5. Chapter 14 Section 1 Notes Worldwide Shock Waves Europe was still recovering from World War I In 1930, Congress passed the Hawley-Smoot Tariff, established the highest protective tariffs in US history It was designed to protect farmers and manufactures from foreign competition The tariff prevented other countries from earning American currency to buy American goods Many nations retaliated by raising their own tariffs World trade dropped by 40%