Causes
October 1929- because they were worried about falling prices, investors sold stocks leading to more selling and stock prices dropping dramatically
a cause of the Great Depression
Stock Market Crash (Black Tuesday)
1932 about 25% of American workers were unemployed
Unemployment rate would stay around 20% through the 30s
unemployment
the reason why Hoover intially did nothing
Hoover thought the Depression was temporary
When FDR was elected president
1932
Closed all banks in the country for four days
help banks recover from collapse
Bank Holiday
factories made more product than they could sell; led to lower wages and layoffs
a cause of the Great Depression
overproduction
poeple lost their homes because they had no jobs
homelessness soared
What Hoover thought the government's role was in responding to the Great Depression
Government should have no role
illness FDR had that left him in a wheelchair
polio
the three R's of the New Deal
Relief, Recovery, Reform
1929- 1% of the population held 33% of the countries wealth
Many americans were living in poverty
a cause of the Great Depression
Income Gap
people lost jobs and had to money to feed their familes
hunger spead
Who Hoover thought should supply people with relief
Charities
weekly radio addresses FDR gave to reassure the American people
Fireside Chats
FDR wanted to appoint more Supreme Court Justices that would agree with the legality of the New Deal
Court packing- did not happen
a cause of the Great Depression
Credit fueled much of the 1920s economy
Farmers bought land, equipment, and supplies
Smaller banks suffered when they couldn’t pay
Large banks suffered when market crashed
Between 1930 and 1933 thousands of banks closed
Banking Crisis- banks crashed
Homeless people gathered to live in makeshift villages
Hoovervilles
What Hoover though businesses should do in response to the Great Depression
businesses should not cut wages
name of FDR's widespread economic plan to address the Great Depression
New Deal
women entered the work force
African Americans hit hard (NAACP- to fight for rights)
Native Americans/Mexicans blamed for taking jobs
impact on minority groups
Farm income had shrank throughout the decade
Dust Bowl (over planting and draught)
Farms failed
1932 WWI veterans marched on washington
1924 Congress had agreed to give a bonus to veterans of WWI paid in 1945
Jobless veterans wanted their bonus right away
Bonus Army
How Hoover eventually responded to the Great Depression
1931 asked congress to spend money on public works
January 1932 Create Reconstruction Finance Corporation
Lend money to businesses
Provide money to state and local programs
Did little to help
job FDR had before elected president
Governor of NY
Taxes on workers and employers for
Unemployment insurance
Help people with disabilities
The elderly
Children of poor families
Social Security Act