The Stock Market Crash & The Great Depression 1929-1941

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<ul><li><p>The Stock Market Crash &amp;The Great Depression1929-1941</p></li><li><p>Election of 1928Herbert Hoover (R) defeats Al Smith (D)Hoover wins in response to the economy</p></li><li><p>Causes of the DepressionStock Buying SpreeFaith in the Bull market (strong economy)People buying stock on margin people would only have to put a small amount down to buy stockExample Buy $100 worth of shares for $10 down, and pay back when the stock risesIn Sept 1929, GE stock was $391 per shareby Oct 1929 - $180 per share1932 - $9 per share</p></li><li><p>Causes of the DepressionBusinessOverproduction of consumer goodsProfits went into market instead of wages (less money for consumers to buy goods)Gap Between the Rich and the PoorShrinking middle classUnequal distribution of wealth</p></li><li><p>Causes of the DepressionWeak Banking SystemBanks invested depositors funds into risky stocks</p><p>Runs on banks (panics where investors withdrew all their money at once)</p></li><li><p>Picture of a Run on a Bank</p></li><li><p>Causes of the DepressionRisky European LoansSome 10 billion dollars loaned to European nations during WWI and years after to help in the rebuilding</p><p>FarmersOverproduction due to drop in world demand (WWI over, no need to feed the world population anymore)</p></li><li><p>The CRASH!!!!The stock market CRASHED on Tuesday October 29, 1929 a.k.a. Black Tuesday</p><p>The Roaring 20s came, literally, to a screeching halt!</p></li><li><p>Years of Suffering: The Great DepressionHoovers Response (or lack thereof)Hawley-Smoot Tariff High tariff that seals off American markets from other nationsMade more than $1.5 million in loans to businesses to keep them running.</p></li><li><p>Bonus Army a group of unemployed U.S. WWI veterans who set up camp in Washington D.C. demanding the government pay their promised bonuses instead of in 1945. Hoover orders the army to disband the protest (hurts his reputation even more)Hoover believed in Rugged Individualism where people help themselves pull themselves up by their own boot straps.</p></li><li><p>Election of 1932By 1932, Hoovers popularity is at an all-time lowHoovervilles group of shacks near city dumpsHoover blanket old newspaper for hobo blanketsHoover flag an empty pocket turned out (no money)</p></li><li><p>Photo of a Hooverville</p></li><li><p>ROOSEVELT WINS!!!!Franklin D. Roosevelt wins the 1932 election easily over Hoover</p><p>FDR immediately puts into place his plan for getting the United States out of the Depression(photo of Franklin and his wife Eleanor)</p></li><li><p>FDR &amp; the New Deal2. FDR believed government should help people over come economic hardship unlike Hoover who believed everyone would benefit if business didRoosevelt was inclined to help people directly by giving them government jobsFederal money would give people hopeWould also put money into the economy</p></li><li><p>4. All FDRs programs together are called the New DealPromises action with strong emergency powers of the presidentGives fireside chats with radio audiences to calm people down and to give them hope</p></li></ul>