Ch. 10 Notes - (10/28)

Election of 1928

• Herbert Hoover wins

Great Depression

• Is there a parallel to something in modern times?

Great Crash

• Bull Market - Growth

• Bear Market - Decay

• “Black Thursday” - (Oct 24. 1929)

• “Black Tuesday” - (Oct 29. 1929)

Income Distribution in America

• 71% living very poorly - today ~20-25% live in poverty

Causes

• Bulls vs Bears

• Buying on margins/ credit structure

• Over-speculation/ Unstable banks

• Weak industries

  • Overproduction/ underconsumption

• Lack of diversification

• Uneven distribution of income

• Weak international economy

  • Hawley-Smoot Tariff 1930

• Adherence to the international gold standard

• Historiography

  • All different interpretations

Run to the Bank

• Bank runs - people running to collect money from the bank

• Hooverville - Badly made houses to criticize the government

• The Dust Bowl - Environmental disaster

Hoover’s Response

• Volunteerism

  • Like WW1

• Public Works

  • Hoover Dam

• Hawley-Smoot Tariff 1930

• Federal Farm Board 1930

  • Tries to get farmers to work together to help

John Maynard Keynes

• Keynesian Economics

  • Government in good times should save money, in bad times, spend money

The Bonus Army and March (1932)

• Soldiers from WW1 want money from their services

• Hoover burning out the WW1 veterans

Social Changes Tied to the Great Depression

• Women

  • Lost their jobs first

• Families

  • Birth rate fell

Pop Culture 1930s