1. Causes of the Great Depression  Overproduction & Underconsumption  Overexpansion of credit  Uneven distribution of income  Speculation in stock market & real estate  Weak farm economy  Government policies of deregulation & high tariffs  Global economy  Crash of stock market in October 1929

3. Hoover’s Policies  At first – voluntary action and restraint  Don’t cut wages  Don’t go on strike  Private charities increase efforts to help  Government assistance would destroy self- reliance  “Rugged Individualism”

4. Hoover Policies  Hawley-Smoot Tariff – highest in history  Debt moratorium – suspended payments on international debt owed to US  Federal Farm Board – help stabilize farm prices  Reconstruction Finance Corporation – to prop up failing railroads, banks, insurance companies

5. The Depression Deepens  Increased unemployment (+25%)  Banks and businesses closed  People lost their homes  Hoovervilles, Hoover blankets  Breadlines, soup kitchens  People associate bad times with Hoover’s lack of effective response

6. The Election of 1932 Hoover v. FD Roosevelt

7. Herbert Hoover  Republican  Talented administrator – WWI Food Administration; Cabinet; incumbent President  Economy was sound; avoid direct gov’t involvement  Rugged Individualism; Supply-side economics; Reconstruction Finance Corp.

8. Franklin D. Roosevelt  Democrat  Governor of NY – “little New Deal”  Experiment – try something; if it doesn’t work, try something else  Demand-side economics; get help to those in greatest need; “A New Deal” for the American people

9. Electoral Vote -1932

10. FDR – transition to Presidency  “Brain Trust”  100 days  Fireside chats

11. FDR’s New Deal The 3 R’s Relief Stop downward Trend “first aid” Recovery Help to get industries Going again “turn it around” Reform Permanent changes to The system “never let it happen again”

12. RELIEF  Stop the bleeding  Stop the downward spiral of depression  Apply first aid

13. RECOVERY  Turn the economy around  Get industries moving again

14. REFORM  To make sure this never happens again  Permanent changes to the system