1. Section 1 The Nation’s Sick Economy
In America today, we are nearer a final triumph over poverty than is any other land. – Hoover
Chapter 14
Section 1
The Nation’s Sick Economy
we shall soon with the help of God be in sight of the day when poverty will be banished from this nation. - Hoover

2. Economic Troubles on the Horizon
Railroads, textiles, steel see small profits
Mining, lumber demand drops
Housing starts declines
Farmers default on loans leading to bank closures
President Hoover vetoes price-supports laws
Americans are buying less, why?
Buying on credit leads to debt
Uneven distribution on wealth

3. Share of total income going to top 1%

4. Hoover Takes the Nation
Election of 1928 Hoover v. Alfred E. Smith

5. Dreams of Riches in Stock Market
Dow Jones Industrial Average
Bull market
Speculation
Buying on margin

6. Stock Market Crashes
October 29, 1929 known as Black Tuesday

14. Financial Collapse Great Depression – 1929 – 1940
by ,000 banks had closed! They had made bad loans, invested in stock market and
People lost their life savings!!!!!!!!
The government did not protect nor insure bank accounts
Unemployment rose to 25%
Europe suffers effects also
1930 Congress passes Hawley-Smoot Tariff Act
Reduced the flow of goods into America and ultimately made the economy worse