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The Great Depression 1929-1945

Economic Troubles. Prosperity is superficialSeveral industries barely making profitsYou can tell economy by housing situationFarmers one of hardest hit groupsPrices fall; gov't tries to helpCoolidge vetoes McNary-Haugen billConsumer spending downHuge gap between rich

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The Great Depression 1929-1945

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    2. Economic Troubles Prosperity is superficial Several industries barely making profits You can tell economy by housing situation Farmers one of hardest hit groups Prices fall; gov’t tries to help Coolidge vetoes McNary-Haugen bill Consumer spending down Huge gap between rich & poor Many Americans overspend, buying on credit

    3. Stock Market Crash Economists warn of weaknesses in early 1929 Too much speculation of stocks Stock prices decline into October 1st “dumping” happens on Oct. 24th Collapse happens on Black Tuesday, Oct. 29th Terrible panic w/ everybody selling stocks Record 16 million shares dumped, millions not sold Losses totaled over $30 Billion by early Nov. Crash signaled beginning of Great Depression

    4. Effects of Stock Market Crash Americans had purchased stock ‘on margin” Paid 10% down, pay the rest when stock prices fall Americans did not have the money to pay back Banks failed Unemployment rises from 3% (1929) to over 25% (1933)

    5. Banks Failed After the crash, many begin withdrawing money from banks Banks had invested other people’s moneys Millions of people lost their life savings Banks closed because withdrawals outnumbered deposits

    7. Government Reacts Government passes Hawley-Smoot Tariff Highest protective tariff in history Tariff backfires, closing foreign markets to our goods World economy suffers also Businesses do not sell goods to Americans or foreigners

    8. President Hoover Continues laissez-faire economics Does not offer assistance to Americans Believed in ‘rugged individualism” Americans should help themselves Individuals and charities may give to needy

    10. Hoover continued Many Americans blamed Hoover for Depression Those who lost their homes lived in Hoovervilles

    12. Bonus Army 1932, World War I veterans marched on Washington DC Demanded early payment of bonus Not due until 1945 Congress denied payment Some refused to leave Hoover ordered US Army to drive veterans and families out Cost Hoover the Election of 1932

    14. Election of 1932 Franklin Roosevelt (D) won Promised Americans a New Deal Very vague, but he won Was inaugurated on March 4, 1932 Too much of a delay Congress passed the 20th amendment Changed inauguration to January

    16. Bank Holiday #1 problem in US was bank failures FDR ordered all banks to close for one week US Treasury would inspect all banks Only good banks would re-open After one week, banks re-opened, deposits outweighed withdrawals for first time since Depression began FDR increased American confidence in banks

    17. New Deal FDR’s New Deal promised ‘bold experimentation”

    18. Civilian Conservation Corps

    20. Critics of FDR Father Coughlin Wanted to guarantee income for elderly people Would have to spend money every month Would create jobs Later became the basis for Social Security

    21. More Critics Huey Long Share the Wealth Wanted to guarantee every child a college education Every family would receive a new home Was assassinated before he could run for president

    22. Court Packing Supreme Court struck down two of FDR’s New Deal programs AAA and NRA FDR wanted to change the number of Supreme Court judges Would ensure that he would have ‘friends’ on the court Public and Congress were outraged FDR did not get to appoint new judges

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