Hoover

1
Hoover The Crash

• The Great Depression
• The New Deal (1929-1940)
• Chapter 26, Section 1

2
Essential Question

• Should the Government Intervene in the Lives of
  its Citizenry? Explain.

3
Herbert Hoover

• Secretary of Commerce Under Calvin Coolidge
• Won the 1928 Presidential Election
• Republican Believed in Laissez Faire!
• 3 Republicans in a Row During 1920s Harding,
  Coolidge Hoover
• Considered One of the WORST Presidents! (Great
  Depression)

4
The Big Jinx!

• In One of Herbert Hoovers Campaign Speeches, He
  Said
• We shall soon be in sight of the day when
  poverty will be banished from this nation
• JINX!
• Why Did Herbert Hoover Believe This?

5
4 Industries in Trouble During the Roaring
Twenties

• Agriculture (Farming)
• Overproduction of Crops with New Equipment
  Lower Prices/Profits
• Railroads
• People Buying Cars
• Textile Mills
• Mass Production of Textiles Lower Prices
• Mines
• Other Forms of Energy

6
The Growing Poor

• By 1929, 71 of Americans Only Made 2500 Per
  Year (Below the Poverty Level)
• Unemployment Rate Was Growing
• African Americans Struggled to Get Jobs! (Racism)

7
1st Cause of Great Depression Overproduction

• Businesses Made More Goods! (Better Tech!)
• Even Though Prices of Goods Went Down, So Did
  Peoples Salaries!
• People Stopped Buying Goods! (Businesses Could
  Not Pay for Materials, Salaries, Equipment, Etc)
• Businesses Had to Cut Costs () to Survive
  (Fire Workers!)

8
Overproduction!
9
2nd Cause of Great Depression Buying on Credit

• Installment Buying
• During the 1920s Most Americans Bought on Credit
• When Americans Salaries Dropped, They Paid Off
  Their Debts Instead of Buying New Goods!
• Businesses Sold Less/ More Overproduction
• Is This Happening Today?

10
3rd Cause of Great Depression Speculation

• During the 1920s Stock Prices Kept Going Up!
• Speculation is the Buying Selling of Stocks in
  Hope of Making a Quick Profit!
• Most Americans Bought Stock in Companies Sold
  It to Make
• Is This Happening Today?

11
(No Transcript)
12
Wall Street NYC
13
4th Cause of Great Depression Buying on Margin

• Investors Took Out Loans From Banks to Buy Stocks
• If Stock Goes Up, Sell the Stock, Pay Back the
  Loan to the Bank, Make a Profit! (Awesome!)
• If Stock Goes Down Uh-Oh!

14
1928 Presidential Election

• Herbert Hoover Won the 1928 Presidential Election
  by a Landslide
• Predicted More Prosperity for America
• (The Big Jinx!)
• Republican Laissez Faire (Hands Off)

15
(No Transcript)
16
(No Transcript)
17
Black Tuesday

• October 29th, 1929
• As The Stock Market Kept Going Lower Lower,
  Americans Panicked Tried to Sell All of Their
  Stocks!
• Nobody Wanted To Buy! Everyone Was Afraid as
  Prices Kept Dropping!
• The Stock Market Crashed!
• Is This Happening Today?

18
Outside the NYSE
19
(No Transcript)
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
Failure of the Banks!

• When the Stock Market Crashed, Banks Demanded
  Customers to Pay Back Their Loans!
• People Who Bought on Margin Could Not Pay Back
  Their Loans! Banks Ran Out of Money!
• Citizens Ran to the Bank To Pull Out Their
  Savings! Banks Had No To Give!
• 9,000 Banks Went Out of Business!

24
(No Transcript)
25
Business Failures 1929

• When The Market Crashed, People Stopped Buying
  Goods!
• Thousands of Businesses Went Bankrupt!
• To Save , Businesses Fired Workers!
• No Work, No Paycheck! No Paycheck, Cant Buy
  Goods! Businesses Fire More Workers, More People
  Have No Paycheck.. Bad Cycle!

26
Unemployment Hunger

• 25 Unemployment in 1933 (1 out of Every 4
  Americans)
• Americans Bought Less Products Businesses Fired
  More Workers!
• Poverty, Homelessness Hunger!
• Everyone Affected!

27
(No Transcript)
28
(No Transcript)
29
(No Transcript)
30
(No Transcript)
31
(No Transcript)
32
(No Transcript)
33
Global/World Wide Depression

• The Great Depression Lasted From 1929-1941 (When
  the U.S. Entered WWII)
• Many Countries Around the World Took Loans From
  U.S. Banks to Help Rebuild After WWI
• When American Banks Crashed, So Did the Worlds
  Economy!

34
Herbert Hoover Laissez Faire Response!

• Herbert Hoover was a Republican Believed
  Government Intervention Should NOT Take Place!
• He Cut Government Spending on Projects Raised
  Taxes
• Plan Made Sense But TOTALLY BACKFIRED!
• Why Did Hoovers Plan Make Things Worse?

35
(No Transcript)
36
Rugged Individualism

• Herbert Hoover Did NOT Want to Give Federal
  Relief ( Food) to the Poor
• Feared Citizens Would Then Rely on the Government
  (Dependent)
• Hoover Believed in the Rugged Individual
• Americans Had to Be Tough Through Hard Times!
  Suck It Up!
• Why Do YOU Think Americans Think of Hoover as One
  of the Worst Presidents Ever?

37
Private Charities

• Herbert Hoover Asked Private Charities to Help!
• Salvation Army, The American Red Cross
  Religious Groups Did As Best As They Could!
• The Demand for Food, , Shelter Jobs Was too
  High!

38
(No Transcript)
39
(No Transcript)
40
Hoover Flags

• Americans Blamed Herbert Hoover For Their
  Suffering!
• Hoover Flags Hoovervilles Were Used to Blame
  Herbert Hoover for the Depression
• Hoover Finally Changed His Laissez Faire Beliefs!
  (Too Little, Too Late!)

41
Hoovervilles
42
(No Transcript)
43
(No Transcript)
44
(No Transcript)
45
(No Transcript)
46
(No Transcript)
47
Public Works Projects

• Government Funded (Paid For) Projects
• Projects to Improve Infrastructure Roads, Dams,
  Airports, Bridges, Tunnels
• Projects Would Give People Jobs!
• Reverse the Cycle!
• Jobs Paychecks Spending Investment Capital
  Businesses Hire More Workers More Paychecks
  Etc

48
The Hoover Damn (AZ NV)
49
(No Transcript)
50
Public Works Projects Today!
51
(No Transcript)
52
(No Transcript)
53
(No Transcript)
54
(No Transcript)
55
The Bonus Army

• 12,000-15,000 WWI Veterans Marched on Washington
  D.C., Summer of 1932
• Wanted Their Bonuses Early Because They Were
  Broke! Needed the !
• They Refused to Leave Until They Got Their
  Bonuses!
• Set Up Camp in D.C.!

56
(No Transcript)
57
(No Transcript)
58
(No Transcript)
59
(No Transcript)
60
(No Transcript)
61
(No Transcript)
62
Hoover Senate Say NO!

• Herbert Hoover the Senate Vote Down a Bill to
  Give WWI Bonuses Early
• Most Veterans Went Home. Some Stayed
  Protested!
• General Douglass MacArthur the Present Army
  Kicked Them Out of D.C.
• Fighting Broke Out!
• Present U.S. Army Used Tear Gas Force!

63
(No Transcript)
64
(No Transcript)
65
(No Transcript)
66
(No Transcript)
67
(No Transcript)
68
Hoover Looks Really Bad!

• Americans Were Very Upset for the Harsh Treatment
  of the Bonus Army!
• Hoover Looked Really Bad! America Would Look For
  Change!
• FDR Democrat Will Win the 1932 Election!

69
Essential Question

• Should the Government Intervene in the Lives of
  its Citizenry? Explain.