Short-term Causes
- Oct. 29: "Black Tuesday" \= NY stock market crashed, an unprecedented volume of stock sales, ppl. begin panic selling stocks
Long-term Causes (Economy) - Over speculation in the sm \= ppl. invest in co.s (all your eggs in one basket), buying on margin \= paying for part of stock + borrowing monkey to buy rest, international depression
Long-term causes (Politics) - Laissez Faire gov. regulations, no safety nets (soc. security, unemployment, pensions, etc.), high tariffs
Effects - $30 bil. in paper money gone, 25% unemployment, 20% of banks closed; poverty, homelessness, foreclosures → Hoovervilles
President Hoover's Response - urged voluntary action + restraint:
- Companies do not cut wages, unions not to strike, private charity
Hawley-Smoot Tariff (1930) \= highest tariff on imports to protect American industries → Eu. retaliates
Bonus March (1932) \= WWI veterans march to DC to demand promised bonuses (Hoover uses violence)