1929-1941

1928-1932

PRESIDENT HERBERT HOOVER

SIGNS OF THE DEPRESSION:

1. INCREASING UNEMPLOYMENT

2. FARMERS LOST THEIR LAND.

3. STOCK PRICES DECLINED.

4. POVERTY LEVEL INCREASED.

CAUSES OF THE DEPRESSION:

1.UNCONTROLLED STOCK SPECULATION

2.BAD BANKING STRUCTURE

3.OVERPRODUCTION OF GOODS

4.UNEQUAL DISTRIBUTION OF WEALTH

5.DECREASE IN THE MONEY SUPPLY

THE CRASH OF THE STOCK MARKET:

•OCTOBER 24,1929-BLACK THURSDAY

•OCTOBER 28, 1929- $4 BILLION LOSS

•OCTOBER 29, 1929-TERRIBLE TUESDAY, $16 BILLION LOST

CRASH OF THE BANKS:

•UNREGULATED

•CREDIT OVER EXTENDED

•BAD INVESTMENTS

•NO CASH RESERVES.

•ALLOWED CUSTOMERS TO BORROW MONEY TO INVEST IN STOCK MARKET, USING THE STOCK WAS COLLATERAL.

RESULTS:

FAMILIES THAT PLAYED THE MARKET LOST THEIR SAVINGS.

BANKS HAD NO ASSETS OR CASH COMING IN.

•FAMILIES DEFAULTED ON BANK LOANS.

•INVESTORS COULD NOT PAY THE BANKS.

•BANKS COULD NOT GIVE THE DEPOSITORS’ THEIR MONEY WHEN THEY TRIED TO WITHDRAW IT.

1932: 25% OF THE BANKS - GONE

1920-1933

9,000 BANKS GONE, $2.5 BILLION LOST.

1932-WORST YEAR

GNP DOWN 25%

25% OUT OF A JOB

THE FARMING COLLAPSE:

•1929-1933: FARMERS INCOME DOWN 50%.

•1930-1934: THE DUST BOWL HIT.

•MILLIONS LOST EVERYTHING & MOVED TO CALIFORNIA TO FIND JOBS

PRES. HOOVER & HIS ADVISORS: WHAT WERE THEY DOING?

•CONGRESS- DEMOCRAT CONTROLLED, HARD TO GET THINGS DONE.

•HOOVER-BELIEVED IN RUGGED INDIVIDUALISM, CHARITY COMES FROM PEOPLE, NOT THE WHITE HOUSE.

•BELIEVED THE DEPRESSION WAS PART OF A NORMAL ECONOMIC CYCLE.

FINALLY SOME HELP COMES:

•1930-PRESIDENT & CONGRESS ASK BUSINESS TO KEEP PRODUCTION UP.

•HAWLEY-SMOOT TARIFF PASSED- RAISED TARIFF, SPENT $500 MILLION TO HELP FARMERS.

•1931- RECONSTRUCTION FINANCE CORPORATION LOANED $2 BILLION TO AID THE STATES

JUNE 1932-THE BONUS ARMY

•20,000 VETS MARCHED INTO WASHINGTON, D.C.

•WANTED THEIR VETERANS PENSION NOW INSTEAD OF 1945.

•JULY- HOOVER ORDERED GENERAL D. MACARTHUR TO CLEAR THE CAMPS. TANKS, BAYONETS, AND GAS WERE USED. DOZENS KILLED AND WOUNDED.

ELECTION 1932ELECTION 1932

REPUBLICAN PARTY:

HERBERT HOOVER

“IT COULD HAVE BEEN WORSE”

DEMOCRATIC PARTY

FRANKLIN D. ROOSEVELT

“HAPPY DAYS ARE HERE AGAIN”

“A NEW DEAL FOR THE FORGOTTEN MAN”

ELECTION 1932ELECTION 1932

ELECTION RESULT:

ROOSEVELT-

•58% OF THE POPULAR VOTE

•472 OUT OF 531 ELECTORAL VOTES.

NOVEMBER 1932-MARCH 1933

•THE LAME DUCK PERIOD- HOOVER & ROOSEVELT SHOULD HAVE WORKED TOGETHER FOR A SMOOTH TRANSITION INTO THE WHITE HOUSE.

•FDR/HOOVER REFUSE TO WORK TOGETHER. ECONOMY BECOMES WORSE.

•THE 20TH AMENDMENT PASSED TO SWEAR IN NEW PRESIDENT IN JANUARY. IT REDUCED THE AMOUNT OF TIME BETWEEN ELECTION DAY AND INAUGURATION DAY.