Crash and Depression

1
Crash and Depression

• Chapter 22

2
Economy Appears Healthy

• Herbert Hoover replaces Coolidge
• Wonderful Prosperity
• Stock Market grows during the 1920s
• Unemployment below 4
• Everybody Ought to be Rich
• Welfare Capitalism
• Paid vacations, health plans, English classes

3
Economic Danger Signs

• Uneven Prosperity
• 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
• 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 1920s

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• Prohibition Repealed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
Hoovers Limited Strategy

• Voluntary Action Fails
• The Government Acts
• Hoover Dam
• Hawley-Smoot tariff
• Reconstruction Finance Corporation (RFC)
• Hoovers 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
• Franklin Delano Roosevelts 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