Chapter 23.1 The Nation’s Sick Economy

The Election of 1928

• _______________________________ (Rep)– _______________ Prohibition

– Took credit for ______________________ of the 1920s

• ______________________________ (Dem)– ___________________ Prohibition

– First Roman Catholic ever nominated for President

• Hoover _________ by a landslide

The Long Bull Market

• _____________________: system for buying and selling shares of companies

• _________ Market: Long period of rising stock prices (____________ Market is opposite)

• 1920s lead to heavy ________________________

Margin, Margin Call, and Speculation

• _____________________________: buying stock with small down payments (good as long as stocks went up)

• ___________________________: If stocks begin to fall, broker could demand investor to repay NOW!

• ____________________________: Investors betting on the market climbing and then selling off to make a quick profit

The Great Crash

• 1929: few ___________ investors, stock prices go _____________

• ___________________ were made, and investors began ______________ all stock

• 10/29/29: _______________ stock prices fell $10 - $15 ___________ dollars

• Technically this did _______ cause the depression, it hurt the economy

Results of Black Tuesday

• _______________ lost money on investments• Loans were ____________________ on• Bank deposits were not

__________________, customers lost money if _____________________

• ________________: many people withdrawing money at once = bank ______________________

What is the Great Depression?

• Time period between ______ and ______ in which the _________________ plummeted and the ________________________ rate skyrocketed

• At its peak, _____________ out of work and GNP down by ________ in a 4-year period (1929-1933)

• 11,000 of the nation’s 25,000 banks __________________– Could not pay people back their _________________

Roots of the Great Depression

• __________ bailout of the Bank of England (1927) led to easy, __________________

• Efficiency led to ________________________• Crisis in the __________________ sector• Uneven distribution of income (______ of population

earned less than $2,500/$26,900)• Low consumption = worker’s being

____________________• ___________________________: down payments and

then paying the rest in monthly installments• _______________________________: raised taxes on

imports (US bought less from overseas, and they raised taxes so we shipped less)

• Lowered interest rates, should have _______________ them

Chapter 23.2 Hardships & Suffering During the

Depression

The Depression Worsens• 1000s of banks ____________• High __________________________• _______________ and

__________________________• Unable to pay ________________• _______________________________/Hoovervilles• _______________ emerge• __________________________: uncultivated

fields/drought• Lost farms and moved West (Calif.)

–________________________

Escaping the Depression• ______________________: stories about

overcoming hardship• _______________: Snow White and the

Seven Dwarfs (1st full length animated film)

• Wizard of Oz, Mr. Smith Goes to Washington, Gone with the Wind

• _______________–George Burns, Lone Ranger, Soap

Operas

The Depression Art• Artists and writers portrayed _________________• _________________________: The Grapes of

Wrath• _________________________

– Novelist– Attitudes of Southern Whites and African

Americans

• ________________________________– Photographer; took photos of people of the Great

Depression

Chapter 23.3 Hoover Struggles with the Depression

Promoting Recovery

• Hoover held meetings with big wigs from ________, _________, big business, labor, and ____________________________

• Forced businesses to _________ production, but not lower ___________ (led to the high _______________________________ of the Great Depression)

• Increase _______________________ (government financed jobs)

• Hoover did not __________________ government spending or taxes (Opposed a _____________________________)

• ___________________________ blamed for the Great Depression

Pumping Money Into the Economy• Hoover wanted the _________ to put more currency

into circulation (NO!)

• __________________________________ (NCC): created a pool of money to help banks (No help)

• _____________________________________ (RFC): made $1.5 bil. in loans to banks, RR, and Ag industries (bad b/c it was corrupt)

• Hoover felt relief was for the _____________ level to provide not the federal government

• Emergency Relief Act/Construction Act (1932)

People Got Angry!

• __________________, rallies, __________________ marches

• Marched onto ________________________

• 1 million _________________ were foreclosed (taking possession of)

–Some farmers ____________________________ crops (why?)

Bonus Army• $1,000 bonus paid to WWI vets in

_______________

• Bonus Marches on to D.C to lobby for receiving bonus ______________ (1932)

• Hoover _______________ to meet with army, and ____________ votes it down!

• Police and Bonus Army clash, resulting in several ___________________

A Hurting Hoover• The Bonus Army incident ___________

Hoover’s image with the public• 1932 election coming close and Hoover’s

Democratic opponent, _____________________________________, is looking great to the voting population

• Hoover: “For the 1st time in the history of the depression, dividends, profits, and the cost of living have been reduced but high __________ have not suffered.”

• FDR upon hearing Hoover’s response to the Bonus Army – “Well, Felix [his friend], this will ___________________ me.”

VS.