the great depression

Bonus Army: wWI vets demanding treir promised bonus early.

•Hoover used force against vets.

Impact of the Gireat Depression

  1. Mass Unemployment
    Reached a peak of 25% in 1933

  2. Hoovervilles
    Shantytowns
    Makeshift lodging in urban areas

  3. Migration

  • unemployment issues Caused people to move.

  • The dost Bowl

    The Great Depression

    4 Main Causes Of the Great Depression

    1) overproduction

    - excessive consumerism

    a. 19203 - Buying on credit

    b. New inventions & advertising

    2) Farms & factories overproduced beyond demand.

    a. Wages did not Keep up with prices

    b. Goods Stayed on Shelves (not selling)

    • Businesses cut production (wage cuts and layoffs)

    • Farms foreciose

    3) Stock Market Crash

    - Speculators buy Stock on margin

    a. Speculation- betting the stock market would continue to climb, then Sell and make a quick profit.

    b. Margin- Small Cash down payment

    - October 24, 1929

    a. Black Thursday-Panicked Selling

    - October 29,1929

    A. BlacK Tuescay - total Collapse 4) Bank failures

    1) Loans to speculators

    2) Lines of Credit to businesses

    3) Banks invested depositors money in the stock market.

    5) Hawsey- Smoot Act

    1) Increased tariffs on foreign trade.

    2) other nations retailiated

    3) International trade crippled.

    ••••B. Herbert Hooves Response . ..•••

    1.) Laissez- faire: Policy mat government shoud interfere as little as possible in nation's economy.

    2. Rugged Individualism: an individual is Self-reliant and independent from outside assistance (like government)

    Pubic work projects

    1) National credit Corporation (NCC): Federal money to banks so thy could continue to lend.

    2) Reconstruction Finance Corporation (RFC)

    a. loans to businesses

    3) Emergency relief and Construction Act: first time in history Fecteral gov. Supplied direct relief.