1. AP US History
Week 7

2. Objectives This Week
6.07 Module 6 Exam
7.01 The Great Depression Quiz

3. 6.07 Module Exam
Four Short Answer Essays

4. 7.01 The Great Depression
For the quiz, make sure you understand the following topics:
Causes of the Great Depression
Herbert Hoover’s reaction
Hoover’s “Association Action”
Glass-Steagall Act
Stock market crash of 1929

5. Too Good to Be True Not everyone prospered during the 1920s
600 banks/year were failing between
Farmers and majority of factory workers did not reap the benefits of a booming Economy
Most luxuries had been purchased on credit
People were investing in the stock market

6. What Goes Up…
Presidents Coolidge and Harding believed in laissez-faire (limited role of government)
Signed a protective tariff that unfortunately drove down domestic good
Stock market crashed in October 1929
Banks continued to fail and unemployment skyrocketed

7. President Hoover’s response
Did not believe the stock market crash was any different than previous crashed
Encouraged states, private businesses and organizations to help the economy.
Used government funds to buy excessive crops but failed to stabilize prices
Reconstruction Finance Corporation- Government helped businesses and not individuals (angered many)
Bonus Army- Group of WW1 veterans demanded their bonus they were to receive in Veterans camped out around the White House and Hoover had the national guard attacked them. Americans were horrified the US government would attack Veterans

8. Franklin D. Roosevelt and the New Deal
Promised a “new deal for the American people”
Declared a four day holiday for banks
Passed the Emergency Banking Act, expanded federal power over banks. People started returning to their banks!
Glass-Steagall Act had two parts (1) Separated the banking and investment industries and (2) Created the FDIC, which insures your money