1. 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

2. 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.

3. 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

4. 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

5. 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