1. Pick up a sheet from the table in the back of the room. Answer the questions on the half sheet of paper, indicating whether you agree or disagree with each statement.

2. Hoover to Roosevelt

4. Food Stamps Social Security

7. 1. Easy Credit/Rising Personal debt 2. Speculation/Buying on Margin 3. Overproduction 4. Bank Runs

8. They mention some causes we don’t, there were MANY…we’re hitting the main ones

9. People got easy credit to buy a lot of stuff (cars, appliances). When the market goes bad, they can’t repay their debts

10. People took big gambles on Wall Street hoping to get rich quick People made investments on borrowed money (buying on margin)

11. As supply goes up, demand goes down. This means prices fall. This happened to farmers with their crops, it happened to the auto industry and industries that depended on it (steel, rubber, glass, etc.) SupplyDemand/ Price

12. Banks depend on people putting their money into them…they use that money to loan out and make money When the market started to fall, people panicked and withdrew their money…banks go broke. By 1933 – 11,000 of the 25,000 banks nationwide had collapsed

13. Bank Run

14. Great Depression stats 25% unemployment (today we’re at around 9%) The US lost a total of $30 billion the week of the stock market crash Hawley-Smoot Tariff Act Reconstruction Finance Corporation Hoover’s Response

15. Reconstruction Finance Corporation Gave money to big businesses, railroads, insurance companies Purpose: prosperity at the top would “trickle down” to the rest of the population Puts a tariff in place Taxes imported goods (stuff from foreign countries) so that foreign goods are more expensive. Encourages people to buy American products. Hawley Smoot Tariff Act

16. “Trickle-down Theory” really doesn’t work…

18. Says he will support people directly through relief, recovery and reform