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GREAT DEPRESSION

GREAT DEPRESSION. GREAT DEPRESSION. Election of 1928 Herbert Hoover Republican candidate Alfred Smith Democratic First Catholic to run for President. GREAT DEPRESSION. Herbert Hoover Republican. GREAT DEPRESSION. Alfred E Smith Democrat. GREAT DEPRESSION. Hoover’s Campaign promise

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GREAT DEPRESSION

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  1. GREAT DEPRESSION

  2. GREAT DEPRESSION • Election of 1928 • Herbert Hoover Republican candidate • Alfred Smith Democratic • First Catholic to run for President

  3. GREAT DEPRESSION • Herbert Hoover Republican

  4. GREAT DEPRESSION • Alfred E Smith Democrat

  5. GREAT DEPRESSION • Hoover’s Campaign promise • “Chicken in every pot and a car in every garage”

  6. GREAT DEPRESSION • Hoover wins in a landslide

  7. GREAT DEPRESSION U. S. Still in prosperity but cracks are showing

  8. GREAT DEPRESSION • Easy Credit • Over production of inventory

  9. GREAT DEPRESSION • Economy was strong based on World War I • Installment buying • Dollar down • dollar a week

  10. GREAT DEPRESSION • Made it easy for all to buy • Repossessed if payments were missed • Stock Market opened to all Americans • Some were novice

  11. GREAT DEPRESSION • Speculation • Margin • Buyer puts 10% down on a stock • Broker provides rest as a loan or margin

  12. GREAT DEPRESSION • Buyer gambles that stock is going to increase

  13. GREAT DEPRESSION • If price fell broker called in margin demanded immediate payment • Usually investor or buyer lost everything

  14. GREAT DEPRESSION • BUBBLE BURSTS • October 29, 1929 • “Black Tuesday” • Stock prices plummeted

  15. GREAT DEPRESSION • 29th and 30th 16 million shares were sold • By two weeks time index price fell by 50% • 30 billion dollars were lost in the next weeks

  16. GREAT DEPRESSION • Unsound banking practices led to: Speculation risky loans fake investment schemes

  17. CAUSES OF GREAT DEPRESSION • Credit • Too much • People and banks suffered • People could not pay • Banks lost money

  18. GREAT DEPRESSION • Not all lost some gained tremendously • Joseph Kennedy Sr. allegedly • Got inside information and sold before the market crashed

  19. GREAT DEPRESSION • Agriculture • Depressed for years • Overproduction caused low prices • Agriculture Marketing Act

  20. GREAT DEPRESSION • Established loans to farmers • Federal Farm Board • Purchased surplus crops • Could not limit production • Depression in Europe closed a market for surplus food

  21. GREAT DEPRESSION • Depression was world wide • Smoot-Hawley Tariff • High tariffs on imported goods to protect U S goods

  22. GREAT DEPRESSION • Foreign countries flooded market • Prices continued to fall • Farmers continued to grow crops • Prices plummeted depression worsened especially for farmers

  23. GREAT DEPRESSION • Banking and Finance • Federal Reserve Board was urged to regulate credit and speculation • They did nothing

  24. GREAT DEPRESSION • Deposits shrank • Massive withdrawals • Holidays were declared in Nevada, Louisiana Michigan • Emergency credit pool for relief

  25. GREAT DEPRESSION • Bankers formed National Credit Corporation • Failed to help situation • Fearful that loans would jeopardize their banks

  26. CAUSES OF GREAT DEPRESSION • Few basic industries • No diversification • 2 major industries • Construction • automobile

  27. CAUSES OF GREAT DEPRESSION • Uneven distribution of wealth • More than one half of Americans lived on edge of poverty

  28. CAUSES OF GREAT DEPRESSION • International debt • Europe could not pay back loans to United States from World War I

  29. High Tariffs on American goods • Europe responded with the same high tariffs on American goods

  30. GREAT DEPRESSION

  31. GREAT DEPRESSION • All failed • Reconstruction Finance Corporation (RFC) • Jan 1932 • Provided loans to banks

  32. GREAT DEPRESSION • Railroads • Life insurance • Farm Mortgage assistance • It did ease the banking crisis • January 1932 346 banks failed • April 46 failed

  33. GREAT DEPRESSION • Unemployment Relief Organization • Stimulate private charities • 3 other major measures were passed by Congress

  34. GREAT DEPRESSION • 300 million dollars were allocated to help liquidate banks loans for public works Loans to states to help in public projects

  35. GREAT DEPRESSION • 30 million allocated • Too cautious (RFC) to help • None for Public Works

  36. GREAT DEPRESSION • Hoover would not direct aid to unemployed • Private Charities • Opposition to direct relief

  37. GREAT DEPRESSION • Cemented his reputation as doing nothing to ease depression • Shack villages were called Hooversvilles

  38. Herbert Hoover • Newspapers wrapped around people were called Hoover Blankets • Broken down cars were called Hoover wagons • Pockets turned inside out were called Hoover Flags

  39. GREAT DEPRESSION • BONUS MARCH 1932 • Hunger Marches and unemployed rioted • Bonus Expeditionary Force (BEF) • World War I veterans were able to borrow against life insurance in 1945

  40. GREAT DEPRESSION • Technically it was not a bonus • Veterans wanted the money now • Needed the money for necessities

  41. GREAT DEPRESSION • Congress could not afford payments • Yet they appropriated $100,000 for the marches return home • ½ took offer

  42. GREAT DEPRESSION • Others occupied buildings to be knocked down for public work projects • July 28, 1932 police tried to evict squatters • 2 veterans killed stalemate continued

  43. GREAT DEPRESSION • General Douglas McArthur had orders to move vets • He took it upon himself to drive them farther than President Hoover ordered

  44. GREAT DEPRESSION • McArthur along with junior officers Patton and Eisenhower • Used tanks guns and tear gas to remove veterans

  45. GREAT DEPRESSION • McArthur disobeyed orders to stop • Hoover while upset did nothing to stop McArthur • Reinforced Hoover’s image as a do nothing President

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