THE GREAT DEPRESSION
The Election of 1928
01/21/13
MARCH MARCH 4, 4, 1929 1929 … … HOOVER HOOVER INAUGRATED INAUGRATED
MOST POPULAR PRESIDENT IN HISTORY 8 MONTHS LATER … HOOVERVILLES & HOOVER BLANKETS.
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PROSPERITY NOT SHARED Downtown Medford
AGRICULTURE, COAL , AND TEXTILES DEPRESSED
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WALL STREET 1 SHARE of RCA WENT FROM $85.00 TO $420.00 PER SHARE IN 1 YR. PAID NO DIVIDENDS RADIO UP 530%
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SPECULATORS MARKET BUYING ON MARGIN CALL $$$ … STANDARD OIL ( $69 MILLION A DAY)
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OCT.24 , 1929 … BLACK THURSDAY PANIC SELLING HOUSE OF MORGAN PROPS UP MARKET
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WHY ? WHICH WAY THE ECONOMY ??? CONSUMER SPENDING FELL RAPIDLY BUSINESS INVENTORIES UP 100% IN 1 YEAR BANK FAILURES … 5700 CLOSE RESULTS IN A BLEAK ECONOMIC FORECAST … NO INVESTMENT NAT`L INCOME DROPS FROM $88 BILLION IN 1929 TO $40 BILLION IN 1933 GNP DROPS FROM $104 BILLION TO $56 BILLION IN 1933 1933 --- 25% OF POP. WITHOUT JOBS
FARM PROBLEMS DUST BOWL OAKIES OVERPRODUCTION AND INFLATION
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Okies and Arkies moved west
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The Dust Bowl
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What happened to farmers? The Dust Bowl
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•CAUSES OF THE DEPRESSION 1) PRODUCTIVITY INCREASED 2) WAGES DID NOT 3) DECLINE IN INVESTMENT 4) POOR DISTRIBUTION OF INCOME 5) BANK FAILURES 6) HOLDING CO. --- PYRAMID STYLE 01/21/13 7) ECONOMIC THOUGHT LACKING
STOP 01/21/13
•DIFFERENCES FROM PAST DEPRESSIONS THE MOST SEVERE 1) NO MORE FRONTIER WITH OPPORTUNITIES 2) TOTAL INDUSTRIAL ECONOMY 3) WORLDWIDE
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Hoovervilles
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Labor and the Depression
Curing the Depression?
President Herbert Hoover Rugged Individualism
What did Hoover do to end the Depression? Little action to help people - Rugged individualism helped business - RFC
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Failed Hoover policies Agricultural Agricultural Marketing Act Act Marketing Gov. buys buys farm farm Gov. surplus surplus Farmers refuse refuse to to Farmers limit production production limit Soaks up up gov. gov. Soaks revenue revenue
Hawley-Smoot Tariff Raise tariffs on imported goods Fails as overseas trade decreases
Reconstruction Finance Corporation Gov. lends $ to banks to avoid collapse Again, soaks up gov. revenue Too little, too late as banks continued to close
BACKLASH THE BONUS ARMY World War I vets demand bonuses Marched in D.C. to receive early payment Congress refuses
Driving Out Protestors
Many vets remain, living in open areas army moves in Military burns their dwellings 3 protestors were killed
Change had to Come !!!
“PROSPERITY IS JUST AROUND THE CORNER” CORNER