1. 1929-1939

3. “A chicken in every pot and a car in every garage” – Herbert Hoover

4. A period of severe economic decline, marked by unemployment, decreasing business activity, and falling prices. Previous depressions: 1830s, 1870s, and 1890s

5. Shocking after a decade of unprecedented prosperity Impacted all areas of American life Damaged confidence in the future

6. Median incomes plunged to half of what they had been in 1929 ¼ out of work Impacted all areas of American life Damaged confidence in the future

7. 1920s prosperity was superficial Causes of the Depression were complex and largely ignored throughout the decade

8. The wealthiest 5% took in nearly 1/3 of the nation’s income Nearly ½ of the nation’s families earned less than $1,500 a year—while H. Ford made $14 million Causes: 1) Mellon’s tax cuts 2) Businesses increased profits while holding down wages Effects: Depressed consumer purchasing power Secretary of Treasury Andrew Mellon 1921-1932

9. In 1929, 200 corporations controlled ½ of the corporate wealth Some industries thriving (auto) while others like agriculture declining steadily Average income for a farmer $273

10. For an economy to function properly, the total demand must equal total supply In 1920s there was an oversupply of goods (mechanization of industry & farming responsible) demand supply 1920s Economy

11. Installment plans Borrowing on margin to buy stocks Private banks loaned out millions  rising debt throughout the 1920s

12. America prospered in the 1920s, while European nations struggled to rebuild after the war U.S. lent $7 billion to Europe during the war Another $3 billion by 1920 Britain & France U.S. Germany loans reparations investments

13. Fordney-McCumber Tariff of 1922 Hawley-Smoot Tariff of 1930 Now the British item is priced at $5 Americans are encouraged to buy the cheaper item produced in the US A 25% tariff is levied on such items A $1 tax is added to the price How a tariff works An item costs $4 to make in Britain

14. By 1929 about 4 million Americans or 3% of the population owned stocks Stockbrokers were willing to lend up to 75% of the stocks purchasing price Americans wanted to take advantage of the “bull market” (rising stock prices)

15. Example: RCA stock $85 in Sept. 1928, $420 one year later—even though the company had not paid a single dividend

16. Panic on Oct. 24, 1929 (Thursday), stocks prices plunge Oct. 29, 1929 (“Black Tuesday”), 16 million shares of stock dumped in one day

17. Mellon’s tax cuts Protective tariffs Federal Reserve Board tightens credit Tax cuts Protective Tariffs Tightening of credit 1.Depressed purchasing power 2.Inability to sell goods at home or abroad

18. Widespread bank failures Bankrupt businesses High unemployment

19. Decrease in worldwide trade Increasing numbers of homeless persons Widespread hunger and illness

24. Public opinion made him the villain of the Great Depression. In fact, the 31st president was a visionary -- but a hopelessly inept politician. -- David M. Kennedy

25. Hoover successfully organized and authorized the construction of the Boulder Dam (Now called the Hoover Dam) The $700 million project was the world’s tallest dam (726 feet) and the second largest (1,244 feet long) The dam currently provides electricity, flood control and water for 7 western states

27. The World War Adjusted Compensation Act of 1924 had awarded WWI Veteran bonuses in the form of certificates they could not redeem until 1945. The principal demand of the Bonus Army was the immediate cash payment of their certificates.

28. President Herbert Hoover ordered the army to clear the veterans' campsite. General Douglas MacArthur commanded the infantry and cavalry supported by six tanks. The Bonus Army marchers, with their wives and children were driven out, and their shelters and belongings burned.

29. At least 69 police injured

30. Franklin D. RooseveltHerbert Hoover PartyDemocratRepublican Home stateNew YorkIowa Running mateJohn GardnerCharles Curtis Electoral votes47259 States carried426 Popular vote22,821,27715,761,254 % of Popular vote57.4%39.7%

31. Happy days are here again The skies above are clear again So, Let's sing a song of cheer again!

32. “I pledge you, I pledge myself, to a new deal for the American people.” –FDR 1932 Relief, Recovery, Reform

33. First 100 days- special session of Congress Alphabet soup- New Deal legislation Lame Duck Amendment- 20 th Amend. Pump priming-the theory that government spending projects can generate economic growth in a recession. 1 st New Deal: 1933-1935 2 nd New Deal: 1935-1936 (greater focus on reform) End of the New Deal: 1936-1939

34. Brains Trust—professors from Columbia Univ. who had informal conversations about economic and social policy with President Roosevelt. Black Cabinet—men and women who composed the first sizable representation of African Americans in white- collar posts in the federal government (i.e. Mary McCleod Bethune Rexford Tugwell Mary McLeod Bethune