Crash and Depression Chapter 22

Economy Appears Healthy Herbert Hoover replaces Coolidge “Wonderful “Prosperity” Stock Market grows during the 1920’s Unemployment below 4% “Everybody Ought to be Rich” Welfare Capitalism Paid vacations, health plans, English classes

Economic Danger Signs Uneven Prosperity Buying on Credit Pie Chart pg. 633 Buying on Credit Installment plans Playing the Stock Market Speculation Buying on margin Overproduction, under consumption Too Many Goods, Too Little Demand Assembly lines Trouble for Farmers Farm prices drop after WWI Trouble for Workers

The Stock Market Crash Dow Jones Industrial Average Black Thursday Sept. 3, 1929 = 381 Black Thursday 10/24/29 Black Tuesday 10/29/29 – The Great Crash From Riches to Ruin

The Crash Affects Millions (The Great Depression 1929-1941) Impact on Workers and Farmers Factories close, unemployment rises Gross National Product declines Banks Close Bank Crisis Impact on the World Global economy suffers

Causes of the Depression Overspeculation Stock market gains were based on borrowed money Government Policies Limited money supply, too little money to help economy An Unstable Economy Money in the hand of a few people, industry produces too many goods, farmers and workers not helped by the boom of the 1920’s

Social Effects of the Depression Poverty Spreads “Hoovervilles” Hoover flags, blankets Farm Distress The Dust Bowl Dorothea Lange - photographer Poverty Strains Society Impact on Health Stresses on Families Discrimination Increases

Surviving the Great Depression Americans Pull Together Seeking Political Solutions Depression Humor Hoover Flags, Blankets Signs of Change Prohibition Repealed The Empire State Building The End of an Era

Hoover’s Limited Strategy Voluntary Action Fails The Government Acts Hoover Dam Hawley-Smoot tariff Reconstruction Finance Corporation (RFC) Hoover’s Unpopularity Grows Refusal of direct federal relief Veterans March on Washington Bonus Army – World War I vets looking for pensions McArthur, Patton, Eisenhower

The Election of 1932 A “New Deal” for America The Election of 1932 Franklin Delano Roosevelt’s campaign pledge Eleanor Roosevelt Direct Relief The Election of 1932 Battle between those who believed in government aid and those who were against it FDR wins easily