1920s BOOM! To BUST

What your Author Says:The prosperity of the 1920s ended October

1929 with the stock market collapse. The Wall Street crash, and the economic problems that underlay it, launched a depression that hit every household. President Hoover struggled to respond, but his commitment to private initiative and his horror of direct federal intervention limited his effectiveness. In In November 1932, voters turned to the Democratic November 1932, voters turned to the Democratic Party and its leader, Franklin Roosevelt. This set Party and its leader, Franklin Roosevelt. This set the stage for a vast federal response to the the stage for a vast federal response to the economic and social crisis.economic and social crisis.

1920s BOOM! To BUST

Today’s Topic:

What were the causes of the Great Depression. (5)

Where we are at:

Speed Bump1919

CRASH!

Depression

1920sNew Industries

Awesomeness!

It’s a Cycle!

Loss ofBuyer

(unemployed)

Overproduction

Gov. Raised Tariffs

Loss ofBuyer

(no trade)

Mistakes Federal Bank

Loss ofBuyer

(savings gone)

Stocks CrashLoss ofBuyer

(no credit)

Banks Close

Loss ofBuyer

(in debt!)

Cause #1: Overproduction

What happened?

Result?

#2: High TariffsWhat happened?

Result?

Hawley-Smoot Tariff were the second-highest in U.S. history exceeded by a small margin only by the Tariff of 1828

#3: Mistakes made by Fed BankWhat happened?

Result?

#4: Stock Market Crashed

What happened?

Result?

#5: Banks Closed

What happened?

Result?

Write a Thesis:

How did President Herbert Hoover respond to the Great Depression?

1920s BOOM! To BUST

Author’s Thesis:

President Hoover struggled to respond, but his commitment to private initiative and his horror of direct federal intervention limited his effectiveness

What were the causes of the Great Depression?

Election of 1928 Herbert Hoover

How do we know him?

-Lead the food administration (ration) in WWI

-“The Great Engineer”

“We are nearer to the final triumph over poverty than

ever before!...I have no fears for the future of our

country. It is bright with hope”

Hoover’s Responds to the Great Depression

Needs to be fixed? Attempts Made. Successful?

Unemployment

PWA:-Public Works

Administration:

• Problem = Who pays?1.) Raise Taxes?2.) Run a deficit =

spend more money than the gov has. = debt

Needs to be fixed? Attempts Made. Successful?

Debt ReliefFor thePeople

Relief:Did not believe it was the

Fed Gov’s responsibility

• Gave $ to the states and they dealt with the issues.

• Not enough $ without going into a deficit (debt)

Needs to be fixed? Attempts Made. Successful?

Stop Business

& Bank

Closings

RFC:Reconstruction

Finance Corp

Have Federal Government loan money to

- Banks - Railroads - Farmers

RFC = TRICKLE DOWN Economics

Hoover’s Responds to the Great Depression

How did Americans react to Hoover’s failed attempts at fixing the economy?

1.) They nicknamed the Shantytowns

HoovervillesHoovervilles

2.) Bonus Army March- WWI soldiers promised $1,000

- 1932: 1,000 left Portland D.C…grew

to15,000

- Eventually cleared out by the D.C police