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1929 - 1932


Herbert Hoover

America's 31st
president, took office in
1929, the year the U.S.
economy plummeted
into the Great
Depression.
Hoover bore much of
the blame in the minds
of the American people.

Herbert Hoover
Bull Market
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Bull Market

Bull Market

When the stock market
has an upward trend in
stock prices
Caused by heavy buying
of stocks
Bear Market
Bear Market

Bear Market

When the stock market
has a downward trend in
stock prices
Caused by heavy selling
of stocks
Margin buying
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Margin buying
Sell
Here
Margin buying
Buy
Here


Margin buying

The practice of buying
stocks with borrowed
money
Speculators could
purchase stocks with as
little as a 10% down
payment (10% margin)
This meant people could
borrow as much as 90%
of the price paid for
stocks
Black Thursday
Black Thursday


Black Thursday


October 24, 1929
Day when nervous
stockholders began selling
their stocks
This dumping of stocks
lowered the price of the
stock since there was a
large supply available
Caused a panic where
many began dumping
stocks - 12 million shares
changed hands
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Black Tuesday
Black Tuesday


Black Tuesday

October 29, 1929
Stock prices sink to a
new low with panic
selling occurring again
More than 16 million
shares changed hands
Gross National
Product
Gross National
Product

Gross National
Product


The total value of all
goods and services
produced in a given year
Pre-depression highs
reached $103 billion
(1929)
Depression lows sank to
$56 billion (1933)
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Bank Failures
Bank Failures


Bank Failures


Many banks lost a
significant amount in the
stock market crash
Borrowers began defaulting
on their loans
People began withdrawing
their savings from banks
because they had no faith
in the banks
More than 5,000 banks
closed between 1930 and
1932
Great Depression

Great Depression
Great Depression


Worldwide and deep
economic downturn that
gripped the U.S. from
1929 until the beginning
of WWII in 1939
Made the U.S.
economically vulnerable
Changes relationship
between federal
government and citizens

Now, the federal
government took a much
more active role in
people’s lives
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


Margin buying
High tariffs
Worldwide economic decline

Causes of the
Great Depression
Causes of the Great
Depression

Falling agricultural prices



Europe was still recovering from the
debt caused by WWI
During WWI, American farmers grew
enough food to feed Europe
This caused a drop in prices
Overproduction of industrial goods


Rapid industrialization caused the
production of too many products
This caused unemployment when
companies cut back
Business cycle
Business cycle


Business cycle


The ups and downs of
business in a freeenterprise system
Prosperous time include
more people working and
more production
Surpluses build up,
leading to laid off workers
This creates a recession or
depression until the
surpluses are sold, then
the cycle repeats
Widespread
unemployment
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Widespread
unemployment

Widespread
unemployment


Deportation and
Repatriation
Deportation and
Repatriation



Unemployment reached
25% during the Great
Depression
Deportation and
Repatriation


Widespread unemployment
increased pressure to deport
non-Americans to decrease
competition for jobs
500,000 Mexicans were
deported in the early 1930’s
The Mexican Repatriation
refers to a mass migration
that took place between
1929 and 1939,
People of Mexican descent
were forced return to Mexico.
Breadlines
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Breadlines

Breadlines


A place where soup and
bread are served to the
poverty stricken people
Operated by charitable
organizations
Provided the poor with
meals they could not
afford to eat
Shantytowns
Shantytowns
Shantytowns


Shantytowns

A collection of makeshift
shelters
Built with cardboard,
scrap lumber, and any
other thrown away
material that could be
found
Known as “Hoovervilles”
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Rugged individualism
Rugged individualism

Rugged individualism


Herbert Hoover’s idea
that success comes
from individual effort
and private enterprise
Believed that the
government should stay
out of economic
problems
Believed private
charities and local
communities could best
provide for those in need
Bonus Army
Bonus Army

Bonus Army


A group of World War I
veterans that were
unemployed
Asked for the pension
they were promised early
Marched on Washington
to seek support from a
bill to provide these
bonuses early
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Hoover’s
Accomplishments
Hoover’s
Accomplishments
Back door diplomacy.
Known as the “Do
nothing” president.
 Reconstruction
Finance Corporation –
gave emergency loans
to banks and
businesses
 As Hoover later proudly
proclaimed: It was a
"program unparalleled
in the history of
depressions in any
country at any time."


Hoover’s
Accomplishments

Franklin D. Roosevelt
Franklin D. Roosevelt



The Democratic
representative for
President in the 1932
election
Promised America a New
Deal to solve the
depression
Overwhelmingly won the
election 472 electoral
votes to 59 for Hoover
Became President in
March 1933
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CHAPTER 15 SECTION 1 QUIZ
 1. Identify who Franklin D. Roosevelt was?
 2. Describe what rugged individualism
was?
 3. Explain what the Great Depression was
and how it impacted America?
 4. Describe what a Shantytown was?
 5. Explain what a Bull Market is?
 6. Identify what Gross National Product is?
 7. Explain what breadlines were?
 8. Describe what the Bonus Army was?
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