1. Great Depression and Its Causes

2. Stock Market Crash
August 1929-Recession
October 1929-Market Crashes

3. Statistics

8. Causes Illusion of prosperity Overproduction
Buying items on credit
Overproduction
Unequal Distribution of Wealth
99% of population –9% increase income
Top 1% saw 75% increase
Monetary Policy
Federal Reserve-policy-decline in money supply—fall in interest rates
Gold Standard
Agricultural Sector
41% decline
Bank Weakness in 20s
Speculation on Wall Street
Buying Stock on Margin

10. 4 Problems with Hoover
1. Once economy collapses, Hoover gets the blame.
2. Hoover is a millionaire – resented by suffering people for that
3. The Problems during the Great Depression are so bad.
4. His policies during his presidency are ineffective

11. 1. Smoot Hawley Tariff Extremely High Tariff
Hoover waned to raise tariff higher to protect US goods
Analyze
Outcome:
1. Raises the cost of goods
2. The tariff was one of the Causes of the Depression!

12. 2. Presidential Optimism
Hoover gave speeches in which he said this is a temporary problem and encouraged people to be positive thinkers
Analyze
Outcome:
1. Not really solving anything, could be thought of as a liar if things don’t work out.
2. Angered People b/c he is a millionaire!
- Cardboard box homes  Hoovervilles
- Newspaper blankets  Hoover Blanket
- Pant Pocket turned out  Hoover Flag

13. 3. Taxes Belief was if he Cut taxes  people will have more $ to spend
Analyze
Outcome:
1. People have no money to begin with to be taxed, so less taxes does not matter
2. LESS GOVERNMENT SPENDING!!!
3. People may hoard $, not spend it

14. 4. Plead with Big Business
Hoover begged Employers to rehire, open up factories
Analyze
Outcome:
- Businesses can’t sell  can’t pay employees  can’t rehire b/c there is no work to be done

15. 5. State and Local Government Should Get Involved
State and Local Government should find solutions, help people in a rough state
Analyze
Outcome:
- Federal Government maintains it is not part of its responsibility
- No Money to use b/c Hoover cut taxes

16. 6. Charity Ask Americans to be Charitable
Give $ to charity, loan to neighbors, invite troubled neighbors to dinner
Analyze
Outcome:
- This is only a Temporary Solution
- Gap between wealthy and poor is so big, wealthy could not give enough to help!

17. 7. Reconstruction Finance Corporation (R.F.C.)
Program established in 1932 that gave Fed government loans to banks and business to help them re-adjust
Analyze
Outcome: Good idea, but waits to long and does not go far enough in Federal Aid

18. Election of 1932 Hoover (R) vs. Franklin D. Roosevelt (D)
In the end, Hoover had the impossible task of defending failed policies and strategies.
Instead of campaigning, Hoover spent time begging Roosevelt to not do anything too radical.
Hoover was afraid FDR would undo the nation’s chance for recovery if he was too radical.

19. Election of 1932 Election of 1932 Candidates Party Electoral Vote
Popular Vote
FDR
Democratic
472
22,821,857
Herbert C. Hoover
Republican 59
15,761,845
Norman M. Thomas
Socialist
881,951
William Z. Foster
Communist
102,785