1. 8-5: The Great Depression, 1929-1930s

2. Thematic Learning Objectives
WXT 2.0 Explain how patterns of exchange, markets, and private enterprise have developed, and analyze ways that governments have responded to economic issues.
MIG 2.0 Analyze causes of internal migration and patterns of settlement in what would become the United States, and explain how migration has affected American life.

3. Key Concept
Growth expanded opportunity, while economic instability led to new efforts to reform U.S. society and its economic system.

4. Causes and Effects of the Depression, 1929-1933
Wall Street Crash
Overspeculation—investments made with borrowed money
Buying on margin
Overpriced stocks led to massive selloffs
Stock prices rapidly declined in October 1929

5. Causes and Effects of the Depression, 1929-1933
Causes of the Great Depression
Uneven distribution of income
Stock market speculation
Excessive use of credit
Overproduction of consumer goods
Weak farm economy
Failure of the Federal Reserve
Dislocations in global trade

6. Causes and Effects of the Depression, 1929-1933
Business failures
Bankruptcies
Run on the banks
Loss on confidence in the market
Reduction in manufacturing
Decline in investment
Workers idle—25% unemployment
Internal migration

11. Hoover’s Policies Philosophy Responding to a Worldwide Depression
Depression natural occurrence
Recovery dependent on business community and private charities
Responding to a Worldwide Depression
Hawley Smoot Tariff (high)
World trade declined by 40%
Debt moratorium for Germany

12. Hoover’s Policies Domestic Programs Despair and Protest Hoovervilles
Reconstruction Finance Corporation
Federal loans to private businesses
Federal loans to state/local governments
Despair and Protest
Hoovervilles
Migrations
Unrest on the Farms
Dust Bowl
Farm Holiday
Bonus Army

13. Hoover’s Policies Election of 1932 Candidates Results
Hoover—continuation of policies
Roosevelt
New Deal
Government aid to unemployed
Bold, persistent experimentation
Repeal of Prohibition
Results