Hoover

1929 Stock Market Crash

Major stock market crash that marked the start of the Great Depression

Overproduction

Surplus of goods that led to lower prices and profits

Buying on margin

Borrows money from broker to purchase stock

Speculation

People excessively bought stocks, overinflating them

Bank Failures

Millions of life savings were lost

Hawley-Smoot Tariff

Heavily raised tariffs on imported goods, worsened depression due to decline in international trade

Agricultural Overproduction

New machinery and fertilizers led to increased production, demand fell after WW1, many farmers went bankrupt

Dust Bowl

Caused a drought and soil erosion

Mass unemployment

25% of workforce was unemployed

Hoovervilles

Shantytowns built by homeless

Bread lines + soup kitchens

Many people waited in line for food, important to survival for many

Foreclosures

Forced sale of home

Deflation

Increased debt burdens, caused by bank failures

Bank Runs

Depositors withdrew their money in large numbers

Laissez-Faire Economics

Government does not interfere

Rugged Individualism

Individuals should rely on themselves in economic hardship, justified little government intervention

RFC

Provided loans to businesses and banks to restore confidence in economy

Public Works Projects

Reduce unemployment, increase purchasing power, and encourage economic recovery

Bonus Army

Army veterans marched on DC to demand early payment of their bonuses, Hoover ordered troops to make them leave

Federal Farm Board

Goal was to stabilize prices and promote sale of agricultural products, but was not successful. (did not prevent overproduction)