Hoover and the Great Depression - Notes

Hoover & the Depression

I. The Economics of the Depression & World War I

  • WWI as an Economic Stimulus:

    • Consider how the war acted as a stimulus to the economy.

    • Identify the economic shifts that occurred during and after the war.

II. Roaring 20s

  • Economic Boom Drivers:

    • Examine the products that fueled the economic boom of the 1920s.

  • Department Stores & Consumption:

    • Explain how department stores encouraged increased consumption.

  • Stock Market Activity:

    • Describe the general activity and trends in the stock market during the 1920s.

  • Banking Sector:

    • Explain what was happening with banks during this period.

  • Risky Bank Investments:

    • Identify and describe the bad or risky investments made by banks.

III. The Depression Begins

  • Black Tuesday:

    • Describe the events of Black Tuesday and its immediate impact.

  • Hoover's Response to Black Tuesday:

    • Summarize Hoover's initial statements or reactions to Black Tuesday.

  • Federal Reserve's Actions:

    • Explain the actions taken by the Federal Reserve and how they may have worsened the economic situation.

  • Hawley-Smoot Tariff:

    • Describe the Hawley-Smoot Tariff and its effects on the world economy.

  • Effects of Policies:

    • Analyze the overall effects of these policies on the economy.

IV. Depression Worsens

  • Bank Failures:

    • Explain the reasons behind bank failures during the Depression.

  • Impact of Bank Failures:

    • Outline the impact of bank failures on individuals and the economy.

  • Unemployment Rates:

    • Discuss the unemployment rates during the Depression, including specific numbers or percentages (e.g., Unemployment rate by 1933 reached approximately 25%).

  • Reconstruction Finance Corporation (RFC):

    • Explain the purpose of the RFC and the industries it aimed to support.

  • Money Supply:

    • Describe what happened to the money supply during the Depression.

V. Depression for Farmers

  • Government & Farmers During WWI:

    • Describe the relationship between the government and farmers during World War I.

  • Post-War Relationship:

    • Explain how the relationship between the government and farmers changed after the war.

  • Stock Market Impact on Farming:

    • Describe the ways in which the stock market impacted the farming sector.

  • Farmers' Mistakes:

    • Identify and explain any mistakes made by farmers that contributed to their economic hardship.

  • Farmers & Banks:

    • Describe the relationship between farmers and banks during this period.

  • Farm Product Prices:

    • Explain what happened to the prices of farm products and the reasons behind these changes.

VI. Boom & Bust Viewpoint

  • Boom & Bust Cycle:

    • Explain the boom & bust viewpoint of economic cycles.

  • Andrew Mellon's View:

    • Summarize Andrew Mellon's statements or beliefs about the economic panic.

VII. Causes of the Great Depression

  • Root Causes:

    • Discuss the underlying causes of the Great Depression.

VIII. Bonus Army March

  • Bonus Army March:

    • Describe the Bonus Army March and its objectives.

  • July 28th Incident:

    • Explain what happened on July 28th in relation to the Bonus Army.

  • MacArthur's Convictions:

    • Describe what General MacArthur was convinced of regarding the Bonus Army.

  • Newsreels & Hoover:

    • Explain how the newsreels impacted public perception of Hoover's handling of the Bonus Army situation.