Hippocampus: President Herber Hoover
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Transcript of Hippocampus: President Herber Hoover
Hippocampus: President Herber Hoover
1) What previous experience did HH have in government?
2) Who did HH run against in the 1928 election?3) What new media influenced the outcome of the
election? Why?4) How did Al Smith’s religious affiliation influence
the outcome of the 1928 election? 5) How did the results of the 1928 election reflect the
popularity of the Republican Party?6) What sector of the economy was not doing well in
late 1920s?7) What was happening in the stock market in 1928?8) What is HH most remembered for?
Hard Times
…are Hoovering over us.
The1928 ElectionHerbert Hoover vs. Al Smith
Issues of the 1928 & the outcome…
Objective…• Describe
Hoover’s background & personal philosophy on government.
Herbert Hoover
The irony of the 1928 election…
• Iowa – Republican• Quaker• Self made man• Food Administration• WWI Food Relief• Sec. of Commerce • “Dry”
Hoover’s philosophy on government…
• American Individualism (1922)• “Volunteerism”…
• “a cooperative, socially responsible economic order”…
Objective…
• Explain the basic concepts of the stock market.
The Bull Market• Stock prices rise in the 20s• The market is viewed as a get rich quick opportunity • The basic concept of the stock market…
Watching the ticker tape at the height of the bull market.
The most basic concept of the stock market…
Stock Market 101• What is a share of stock?• Why do companies sell shares of stock?• Why do people buy stock?• What determines the value of stock?• What does it mean for stock to be over
valued (vs. under valued)?…
Stock Market Simulation
• Making money in the stock market:• Long term investment…
• Speculation…
3) Margin buyers…
Stock Market Simulation
IIHow will you invest your money?
ObjectiveIdentify & explain the causes of
the 1929 stock market crash.
G-Docs Mini-ProjectCauses of the 1929 Stock Market Crash
• Using G-Docs create a “Presentation “ and connect me to the “Presentation”
• HW: Read the assigned articles & complete the summary sheets for the assigned homework.
• In class, your assigned group will complete a “Presentation” prioritizing the 6 most significant causes of the 1929 Market Crash. (#1 = most... #6 = least) .... Use Mozilla Foxfire
• Make sure the first slide (title slide) was has the names (first & last) of your group members.
• Each of the 6 slides (7 counting Title slide) dedicated to a cause will have “cause statement” at the top & below it a clear explanation of the cause.
• Identify the person in your group who prepared the slide with their full name in the cause statement.
• Place a asterisk (*) at the beginning of the cause statement if it correlates to NYT article
• The project will be graded, but will not be presented.
Google Docs Mini-Project:Causes of the 1929 Stock Market Crash
Objective... Determine the causes of the 1929 Market Crash.
II. NYT Primary Source Articles on the 1929 Market Crash:– NYT, 1929: Primary 1 - "Wall Street Hums on the Day of Rest to Catch Up on Work“http://www.nytimes.com/library/financial/102829crash-sunday.html – NYT, 1929: Primary 2 - "Stock Prices Slump $14,000,000,000 in Nation-Wide Stampede to Unload;
Bankers to Support Market Today"
http://www.nytimes.com/library/financial/102929crash-slump.html– NYT, 1929: Primary 3 - "Stocks Collapse in 16,410,030-Share Day, but Rally at Close Cheers Brokers;
Bankers Optimistic, to Continue Aid"
http://www.nytimes.com/library/financial/103029crash-lede.html– NYT, 1929: Primary 4 - "Stocks Mount in Strong All-Day Rally; Rockefeller Buying Heartens Market; 2-Day
Closing Ordered to Erase Strain"
http://www.nytimes.com/library/financial/103129crash-mount.html– NYT, 1929: Primary 5 - "Stocks UP Again On Flood Of Buying; Discount Rate Cut Here And In London;
Back to Normal, Reserve Board Finds"
http://www.nytimes.com/library/financial/110129crash-stocks.html
III. Secondary Article on the causes of the 1929 Market Crash:http://www.economicshelp.org/blog/76/economics/wall-street-crash-1929/
2) The weakness developing within the market?...
… the # of Americans owning stock?
The Stock Market Crash* Not a 1 or 2 day event
Wall Street on Oct. 29, 1929
What happened on "Black Tuesday?”…
The Stock Market Crash
• The market lost 40 billion from Oct 29 to April of 1930
• The market crash is followed by The Great Depression
• The low point: 1932-33• The only solution to the
Great Depression will be WW II
“the fundamental business of America is sound” - Hoover
The Crash
4) Why did the stock market crash?
(…Relate to our game?)
The Causes of the 1929 Market Crash
• Speculation with high expectations & “Irrational exuberance”
• Margin purchase... • PANIC selling to avoid loses• Confidence in the market is replaced with
fear…No demand for stock• The availability of credit for business
allows for over expansion...• Over production • The banking system collapses...• Lack of government regulation…
5) What was Andrew Mellon’s evaluation of the slump?
Think…Where did the 40 billion in market
assets (money) go when the market crashed?
Paper profit…
Think…Is paper profit real?...
The impact of the Wall Street Crash…· 12M people out of work· 20K companies bankrupt· 1600 banks close· 1 in 20 farmers evicted· 23K suicides in one year–highest ever
All of the above become issues in the Great Depression.
Objective
Summarize the reasons why the Great Depression occurred.
Recession v. Depression
Objective… Explain the differences between a
recession & a depression
Venn Diagram: Recession v. Depression
Economic activity slows down.
•Consumer spending drops• Production (GDP), investment, household incomes, business profits & inflation fall.
• Increased bankruptcies • Unemployment rise.
• Governments response: Increasing money supply, increasing government spending &
decreasing taxation.
Recession
A long-term downturn in economic activity in one or more countries.
A depression is characterized by: •Lasting a long time
•No buyers…suppliers cut production•Large increases in unemployment
•No availability of credit•Price deflation •Bank failures
Depression
Underlying Weaknesses6) Why is it inaccurate to say that the stock market
crash caused the Great Depression?
GNP: Gross National Product… The total amount of goods & services
produced within our economy
1929: GNP = $104 billion1933: GNP = $56 billion
7) The underlying causes of the Great Depression?...
“the worst economic slump in U.S. history”
• Stock market crash & financial panic• High Tariffs limiting trade• Over production in industry• Weak agricultural economy• Unequal distribution of wealth
Activity…The 5 Causes of the Great Depression
Unite the cause of the Great Depression you have been given
with four other causes and prepare to explain one of the causes when
called upon.
Interpret the following quote…
“In effect, the automobile of American capitalism had one foot pressed to the accelerator of production and
another on the brake of consumption.”
- # of Americans owning stock?
8) Mass Unemployment 1929–1945
Mass Unemployment9) What did it mean to be unemployed and without
hope in the early 1930s?
10) Which groups found it easiest to keep work?
Unemployment:Men line up outside an employment agency hoping to find work.
Selling apples to survive
Does the government have a responsibility to help people in need?
Why?
What objections might there be if the government helps people in need?
Take out a piece of paper and answer the following questions…
Objective… Analyze President Hoover’s
philosophical and leadership response to the market crash and depression.
Hoover’s beliefs…• This is “a business cycle” …“a temporary
slump”…“The economy would fix itself”
• Government should play a limited role in
socio-economic problems. • Government’s role was to encourage &
facilitate cooperation, not to control it. • Private solutions to socio-economic problems
• Preached:“American Individualism”…“Welfare is not useful for society”
Hoover’s Failure*11) What was Hoover’s response to the
Depression and its massive suffering?
• Slow to respond• Calls for city, state & private aid• Meets with key business leaders…
Hoover’s Failure12) How were the needs of the
unemployed addressed in the early years of the Depression?
Hoover’s Failure14) What was Hoover’s plan and what
assumption was it based on? Hoover: Too little, too late
Hoover takes action… • Emergency Committee for
Employment (1930)…
• The Reconstruction Finance Corp. (RFC) (1932)…
- Emergency financing for banks, life insurance, railroads and other large businesses.
- “Trickle down” economics
• Emergency Relief Act (1932)…
On what forces outside the U.S. did President Hoover
blame the country's economic problems?...
Objective… Describe the “human cost” of the Great Depression.
“No event of the twentieth century had a more profound impact on American life”
Photo Journalist Project
A picture is worth one thousand words.
Mass unemployment….•1929… 3% unemployment•1933… 25% unemployment
Urban unemployment:- Cleveland 50% - Akron 60% - Toledo 80%
The Depression Devastates Peoples Lives
- Massive unemployment - Homeless/ Hoovervilles/ Shanty towns…- Soup kitchens & breadlines…- The younger generation travels – Hobos - African Americans: Lowest paid, first fired,
targets of violence- People stop going to doctors/dentists- People give up dreams
Where are the conditions of the Great Depression the most difficult to manage?
Rural or urban? Why?...
The Human Cost• Mortgage failures• Multiple families live
together• Divorce rate decreases • Marriages decrease -25%• College enrollment drops• Males: Anxiety related to
unemployment… Low self esteem
• 3x normal the # admitted to mental hospitals
• 1928-32: Suicide rate + 30%
Poverty brings long term health effects for children…
Malnutrition cause long term health issues for
children
The later impact on health…50% of the men drafted for World War II in 1940-
41 were rejected for medical or dental reasons…
December 1st, 1932
Dear President Hoover,
My name is ___________________________________ and I have witnessed firsthand the economic hardships of the Great Depression. I have witnessed…
As a citizen of this once great country I ask that you….
Sincerely,
A letter to Hoover…
Hooverville, USA
Hoover-ville, USA
Hoover-ville, USA
Soup line / Breadline
What irony is expressed in his picture?
Hoboes or Wild Boys of the rails
Rural homeless…
Penny auctions…
“Hooverisms”…Hoover is a “scapegoat”
– “Hoover-flag”…– “Hoover-blanket”…– “Hoover-hog”…– “Hoovervilles”…
“Mellon pulled the whistleHoover rang the bell
Wall Street gave the signal And the country went to Hell.”
Why do Americans hate Hoover?…
http://xroads.virginia.edu/~ma04/hess/Slang/Hooverisms.html
15) The 1932 protests…
- Detroit Auto workers…
- Farmers’ Holiday Association…- The “Bonus Army”…
Farmers’ Holiday Association Meeting
Dumping milk…
The WWI “Bonus Army”Who? What? Where? When? Why?
http://www.youtube.com/watch?v=dWvCCxOUsM8
Hoover’s Administration
• Congress passes the Smoot-Hawley Tariff (1930)…
- International trade down 50%
http://www.youtube.com/watch?v=dxPVyieptwA
The 1932 Election
Herbert Hoover (Republican)
vs.
Franklin D. Roosevelt (Democrat)
Activity: Article review… On Ending the Great Depression… Count off by 3..1)Hoover - Different 2)Roosevelt - Different3)Hoover Roosevelt - Similar4)Review your assignment with your group and write the differences or similarities on the board. …Be prepared to share with the class.
Hooverball
Quiz terms….• Black Tuesday Paper Profit GNP• Bull Market *Bonus Army *Farm Holiday
Association• Hoover Blanket *Hoover-ville *Smoot-Hawley Tariff• Speculator Margin purchase Paper profit• Recession v. depression• Emergency Committee on Unemployment• Andrew Mellon • Over valued v. under valued stock• Causes of the Market Crash• Causes of the Great Depression• Reconstruction Finance Corporation (RFC)• Who did Hoover’s efforts to end the Great Depression most
help?