1. Crash and Depression
Chapter 22

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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Prohibition Repealed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

9. 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

10. 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