Check these next two Check these next two slides with your slides with your bubble graphs that bubble graphs that you received as you received as Homework last Homework last Friday! Friday!

4 other Causes to the 4 other Causes to the DepressionDepression

1.1. Depressed Farms and IndustriesDepressed Farms and Industries Farms made no moneyFarms made no money

Industries = Under consumptionIndustries = Under consumption Leads to lay offs and lowered wagesLeads to lay offs and lowered wages Extras piling up in warehousesExtras piling up in warehouses

2. Wealth Distribution2. Wealth Distribution Rich get Richer and Poor get Poorer gap is Rich get Richer and Poor get Poorer gap is

hugehuge

4 other Causes to the Depression4 other Causes to the Depression

3. Monetary Policy3. Monetary Policy Federal Reserve System was regulating money Federal Reserve System was regulating money

and there wasn’t enough in circulation to help or and there wasn’t enough in circulation to help or savesave

4. Decline of Foreign Trade4. Decline of Foreign Trade US aided other nations and with no money meant US aided other nations and with no money meant

the slow down of tradethe slow down of trade High Tariffs on foreign countries to make moneyHigh Tariffs on foreign countries to make money

Herbert Hoover’s Response Herbert Hoover’s Response to the to the

Great DepressionGreat Depression

Herbert Hoover’s ResponseHerbert Hoover’s Response Asked businesses to not cut wages Asked businesses to not cut wages

or productionor production

Told cities and states to stimulate Told cities and states to stimulate their economies with building their economies with building projectsprojects

Farm Board = Co-op’s of farms and Farm Board = Co-op’s of farms and sell goods together, until prices risesell goods together, until prices rise

Herbert Hoover’s ResponseHerbert Hoover’s Response

Restruction Finance Corporation (RFC) = Restruction Finance Corporation (RFC) = Stimulus PackageStimulus Package

Gave billion dollars to banks, railroads, Gave billion dollars to banks, railroads, insurance companiesinsurance companies

Why? Inspire business and create jobsWhy? Inspire business and create jobs

Result = Too lateResult = Too late

Hoover’s Problems Hoover’s Problems 1929 = 23,000 businesses failed 1929 = 23,000 businesses failed

1932 = 32,000 businesses failed1932 = 32,000 businesses failed

Annual income =$2300 - $1600Annual income =$2300 - $1600- Why did peoples income only drop $700?- Why did peoples income only drop $700?

Unemployment 25%Unemployment 25%

Hoover’s ProblemsHoover’s Problems• Bonus Army = WWI Bonus Army = WWI

Vets are waiting on Vets are waiting on the White House lawn the White House lawn to receive payments to receive payments early because of the early because of the depressiondepression

Some wouldn’t leave = Some wouldn’t leave = tanks and soldiers fired tanks and soldiers fired on the WWI vetson the WWI vets

Election of 1932Election of 1932 Landside victory for Franklin Delano Landside victory for Franklin Delano

Roosevelt (Democrat) over Herbert Hoover Roosevelt (Democrat) over Herbert Hoover (Republican)(Republican)

FDR on Election DayFDR on Election Day