1. THE 1928 ELECTION  REPUBLICAN  HOOVER –“RAGS TO RICHES” –INDUSTRY, THRIFT & SELF RELIANCE—RUGGED INDIVIDUALISM –DEMOCRATIC  AL SMITH—NY –“WET, IRISH CATHOLIC, CITY GUY” –RESULT: HOOVER WINS –WHY? –“HOOVERCRATS”

2. HOOVER’S PRESIDENCY  WHO IS NOT GETTING THE MONEY???  HOOVER’S “FIXES” –1-AGRICULTURAL MARKETING ACT, JUNE 1929  FEDERAL FARM BOARD –FARM COOPS –2-GRAIN STABILIZATION CORPS. 1930 –COTTON STABLIZATION CORPS –3-TARIFF  CAMPAIGN PROMISE  1930 HAWLEY SMOOT  38% TO 60% –IMPACT

3. Coming of the Great Depression  Stock market speculation  “Black Thursday” Oct. 24, 1929  Prices drop rapidly-----sell off------ prices drop even more  JP Morgan & others--$30 mil in market  Hoover—”Fundamental business of the country is on a sound and prosperous base”

4. GREAT DEPRESSION  Oct. 24, 1929—Black Thursday –Decreased prices----sell off----further decline in prices  OCT. 29, 1929 BLACK TUESDAY  IMPACT??  BY END OF 1929 STOCKHOLDERS LOST 40 BIL IN “PAPER” VALUE  CAUSES OF THE GREAT DEPRESSION OVERPRODUCTION OVEREXPANSION OF CREDIT DECREASE OF WORLD TRADE-tariffs & war debt *DROUGHT IN MISSISSIPPI VALLEY 1930 TECHNOLOGICAL UNEMPLOYMENT TOO MUCH MONEY IN TOO FEW HANDS—Unequal distribution of wealth Bad Banking structure Limited Economic “Intelligence”

5. Affects on different groups  Wealthy—”cushion” of cash  Middle class—wages drop  Can’t pick up the slack of investment  Business—less investment—close factories  Holding Corps/Trusts/Banks—no payback of debt; lost $ in market  Poor—lower wages or layoffs  DOWNWARD SPIRAL OR SNOWBALL AFFECT

6. HOOVER’S POLICIES  1 RECONSTRUCTION FINANCE CORP.  “TRICKLE DOWN ECONOMICS”  2-NORRIS-LAGUARDIA ANTI INJUNCTION ACT 1932  3-USE CHARITIES—NOT GOV’T ASSISTANCE *1930 MIDTERM CONGRESSIONAL ELECTIONS BONUS ARMY

7. 1932 ELECTION –DEMOCRAT FDR –REPUBLICAN HOOVER –NEW DEAL VS. “PROSPERITY IS JUST AROUND THE CORNER” –RESULTS:  DEMS TAKE PRES AND CONGRESS  AFRICAN AM VOTERS SHIFT TO DEM PARTY  FIRST 100 DAYS OF FDR’S PRESIDENCY –3 R’S—RECOVERY, RELIEF AND REFORM

8. FDR AS PRESIDENT “1 ST HUNDRED DAYS”  3 R’S—RELIEF, RECOVERY, REFORM  “NOTHING TO FEAR, BUT FEAR ITSELF”  2 key facts  1-unemployment is key—bring relief to the unemployed  2-inability to sell goods & services –No job---no $---no purchases