1. Chapter 25-1
By: Ian VandenBrooks

2. Key words
Herbert Hover: Republican President who failed to halt the great depression
Stock Market Crash of 1929:Plunge in stock market prices that marketed the beginning of the great depression
Great depression: the serious and world wide economic decline of the 1930’s
Bonus Army: World War 1 veterans who came to Washington seeking early payment of bonuses for wartime service

3. More words
Speculation: buying and selling risky items in the hope of making a quick profit
Public works: government-funded projects to assist individuals, families, and communities in need
Credit: arrangement for delaying payment of a loan or purchase
Economic depression: severe economic slump

4. Problems in business
Herbert Hoover was elected thinking that there would a increase in prosperity
Some industries(railroads, textile mills, and mining) had improved efficiency and made many more goods.
The salaries did not increase
Businesses eventually started losing money because no one could buy products
Technology improved and made an increase in food amounts making farmers vulnerable

5. The illusion of wealth Many citizens were just struggling to get buy
Many new luxuries came out that very few could buy
Americans started buying goods on credit and gave many large debts
Stock market kept climbing making Americans drawn to them
Many investors went on speculation

6. Economic crisis The country soon fell into a economic depression
The stock market then crashed in a total of two months
Investors tried to sell stock as fast as they could
On October 29, 1929 stocks fell by 75%
Banks then had to start closing
Businesses started firing workers leaving millions of Americans unemployed and with little money.

7. The Great Depression
This was the worst economic crisis in American history
Then Europe's economy failed because of the loans they took from American banks
Many Americans felt starvation, homelessness, and extreme suffering up until 1941

8. Hoover Loses the Nations Trust
Americans Blamed Hoover for this crisis
Instead of getting the government involved Hoover decided to encourage churches, charities, and business leader’s to volunteer to help
Hoover then got involved and made the Reconstruction Finance Corporation
Hoover then made public works
The big project was the Boulder dam (now know as the Hoover Dam)

9. The bonus army
The veterans were expecting bonuses even though they weren’t due until 1940
The bonus army in 1932 marched on Washington D.C. For their pays and were rejected
Most went home but many stayed to protest
General MacArthur decided to drive out the rest of the bonus army with tear gas and fired shots
Hoovers unpopularity led to FDR getting elected at the next election.

10. The End