Election of 1928

1
Election of 1928

• Republican -- Herbert Hoover
• Was for prohibition
• Took credit for prosperity of the time
• Democrat -- Alfred E. Smith
• Against prohibition
• Catholic

2
WHAT WAS PROHIBITION

• STARTED BY THE TEMPERANCE MOVEMENT TO BAN THE
  SALE AND CONSUMPTION OF ALCOHOL

3
The Long Bull Market

• Stock market -- system for buying and selling
  shares of stocks
• 1. Bull market -- rising prices for stocks
  (1920)
• 2. Bear Market -- decreasing prices for stocks
  (1930s)
• Buying stocks on Margin -- using credit to buy
  stocks
• May have to pay only 10
• Speculation -- buying stocks with the hope the
  prices will raise

4
BANKS WEAKENED

• WHY?
• 1. Had lent money to investors which they
  couldnt pay back
• 2. Had taken that money and invested in the
  stock market

5
Results of Weak Banks

• Banks had little money
• Banks couldnt make loans
• People couldnt buy stuff
• Banks werent insured (no FDIC)
• People panicked and tried to get their money
  (Bank Run)

6
ROOTS OF DEPRESSION

• 1. Uneven distribution of wealth -- few rich and
  many poor. Many used installment plans --bought
  on credit
• 2. Overproduction -- people werent buying
  goods because many had lost jobs (25 -
  unemployment)
• 3. Loss of export sales -- world was in the same
  situation
• Hawley-Smoot tariff -- raised taxes
• 4. Mistakes by the Fed. Reserve
• 5. Stock market crash (1929)
• 6. Poor Farm economy (drought)

7
Life During The Depressionsec. 2

• Banks close
• Business Fails
• Increased unemployment
• Bread Lines
• Soup Kitchens
• Hoovervilles
• Hobos
• Dust Bowl -- 1932 drought began and many farmers
  had to leave their land to look for work

8
Pictures of the Depression
9
Escaping the Depression

• Entertainment -- Walt Disney
• Gone With The Wind
• Radio -- Jack Benny, George Burns
• Art -- American Gothic
• Photographer -- Margaret Bourke LIFE

10
HOOVER DAM

• Public Works project to reroute the flow of the
  Colorado river
• Goal was to control flooding
• Hydroelectric Power --One of the largest power
  sources for California today

11
HOOVER RESPONDS -sect.3

• 1. PUBLIC WORKS -- GOV. FINANCED PROJECTS
• This helps but not enough
• 2. HOOVER ASKS FED. RESERVE BOARD TO PUT MORE
  MONEY INTO CIRCULATION
• 3. SETS UP THE RFC (RECONSTRUCTION FINANCE
  CORPORATION)
• -- GOV. MADE LOANS TO BANKS, R.R., AND AG.

12
End of sect. 3

• HOOVER WAS AGAINST DIRECT RELIEF - MONEY THAT
  GOES DIRECTLY TO THE PEOPLE BY GOV.
• HUNGER MARCHES -- FARMERS BEGIN TO REVOLT
• BONUS MARCH --WWI VETS MARCHED ON WASHINGTON TO
  GET THEIR BONUS MONEY
• 2 KILLED IN THE REVOLT