2. Republican candidate Herbert Hoover “A chicken in every pot and a car in every garage” Democrat candidate Alfred E. Smith Outcome: - Hoover wins  Times are Great! Why Make a Change? - Public opinion is in favor of the Republicans

3. - Farming Crisis Overproduction = Surplus Crops NOT sold Demand & Prices Fall = Can’t Pay Loans & Lose Farms - Living on Credit Living beyond means = False Sense of Prosperity Credit Easily Available = Business Support Consumer Debt - Unequal Distribution of Wealth Rich got richer in the 1920’s while the Poor got poorer

4. - Industrial Issues Key Industries NOT making much profit in the 1920’s Coal Mining down due to new sources of energy Boom Industries (automobiles, construction) weaken - Less Consumer Spending Rising prices, idle wages, overbuying = Less Spending - Stock Market Bull Market in the 1920’s = Rush to buy Stock (3% buy) Market Speculation  buy with idea to make a quick buck while ignoring the risks Buying on Margin  pay for stock with a down payment and borrowing the rest to pay

5. September 1929 - Stock prices peak then begin to fall October 24, 1929 - Stocks plunge & investors unload shares - Result: Stock Market Panic October 29, 1929 “Black Tuesday” Stock Market Crashes (16.4 million shares dumped and stock prices plummet)

6. - Rush on the Banks People withdraw their money Result  “failure of banks” Result: - Banks run out of money - Millions of Americans lose life savings 1929 = 600 banks close 1933 = 11,000 banks fail

7. - U.S. Economy Falls Business's go Bankrupt (90,000 close) Gross National Product is cut in half (104 to 59 billion) Workers lose jobs (1 in every 4) Unemployment Rate Rises (25% in 1933)

8. People cant afford food Find food at Soup kitchens and in Bread Lines - People lose homes Shantytowns created Nicknamed  “Hoovervilles”

9. African Americans & Latinos Face highest level of unemployment Face violence and discrimination Women Targets of resentment for having jobs Children Poor diets & malnutrition Lack of healthcare Had to drop out of school Ruse in child labor

10. Farmers and Rural Areas Could grow their own food Faced foreclosure of farms Many turned to tenant farming The Dust Bowl (1933-1936) Overproduction + Drought = No Crops Winds + Drought + Bad Soil = Dust Storm Outcomes  - cannot grow food = evictions - farmers leave their land & homes

11. President Hoover’s Belief: - govt. should only play a limited role in solving the economic problems - opposed federal welfare & direct relief to needy

12. Hoover Attempts to Help: - Hawley-Smoot Tariff- highest tariff on imported goods in U.S. history - Boulder Dam Project- creates construction jobs - Federal Farm Board- farm cooperatives aimed at raising crop prices - National Credit Corp.- loaned money to small banks to help prevent bankruptcy

13. - Federal Home Loan Bank Act- lowered mortgage rates and refinances - Reconstruction Finance Corp.- $2 billion in to large businesses (trickle down theory)

14. The Bonus Army (1932): - Patman Bill to pay WWI vets bonus now instead of 1945 is introduced by Congress - WWI veterans march on Washington D.C. to show support of paying wartime bonus now Outcome: 1. created a “shantytown” in D.C. 2. Bill fails  veterans told to leave  they refuse 3. Hoover orders troops to forcibly disband Bonus Army 4. American public stunned by treatment of veterans