Herbert Hoover elected president

in 1928

Hoover was:• Orphaned at a young age,

Graduated from Stanford University

• Degree in Geology•Mining Engineer Millionaire at

30•Became hero in WWI when he

Organized the Belguim Relief Fund

•Secretary of Commerce•Won Presidency with Landslide

in 1928

October 28th 1929

• Hoover takes office in March of 1929 the Stock Market Crashes On Thursday the 24th is bailed out but crashes again on Monday the 28, Tuesday the 29 is called BLACK TUESDAY

• The Stock Market crash was only a symptom of the recession, but led to the Banking crisis, because of the millions of dollars Banks lent to stock brokers or invested directly into the market. Borrowing to buy stocks is called BUYING ON THE MARGIN… as a result of the crash all of the money invested disappears.

Farmers are having problems including the DUST BOWL • from 1930 to

1936 (in some areas until 1940). The phenomenon was caused by severe drought coupled with decades of extensive farming without crop rotation, fallow fields, cover crops or other techniques to prevent erosion.

• Migrants from Oklahoma and Texas flooded California searching for jobs in Agriculture… Farmers took advantage of the great numbers of workers and wages dropped severely

Smoot-Hawley act 1932 attempts to keep jobs in America, but Actually causes Europe

to retaliate so that more jobs are lost.

Other Causes of the Great Depression

• An Uneven Distribution of wealth• Over Production…. Or too many

working class people who couldn’t afford to be consumers.• Easy credit before the crash. No

credit after the crash.

Shanty towns became “HOOVERVILLES” there were also Hoover Blankets

and Hoover Flags.

Hoover does finally act in 1932, when he creates

the Reconstruction Finance Corporation

which lent $2 billion dollars for banks and

large businesses and he created the the Federal

Home Loan Bank Act which allowed home

owners and farmers to refinance their farm and

home loans to avoid foreclosure.

• In 1924, congress voted to give veterans of WWI a $500. bonus to be paid out in 1945. Congressman Wright Patman proposed that veterans should be paid there bonus immediately. Veterans Marched to Washington to support this bill.

• They came with their families and camped at a park. Hoover became convinced that these people were communists. The bill was voted down.

• Hoover ordered them to leave but many had no place to go. Hoover gave General MacArthur the order to get them out. Hoover told MacArthur not to pursue the Bonus expedition across the bridge to their encampment, but MacArthur ignored the order.

• MacArthur attacked with bayonets drawn, shooting tear gas and burning encampments. MacArthur then went on Radio and congratulated Hoover for giving him the order.

• Hoover was up for reelection after this… Most Americans viewed his actions as hard hearted. Hoover lost to Franklin Delano Roosevelt

Unemployment 1920- 1945

• World War II cost about 1 trillion dollars