AMH 2020 - AMH 2020 The Depression and beyond 12:32:00 ← The Situation • Booming economy of the 20’s problems brewing under the surface o

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Unformatted text preview: AMH 2020- The Depression and beyond 25/02/2008 12:32:00 ← The Situation • Booming economy of the 20’s problems brewing under the surface o consumer goods o Misdistribution of wealth o stock Market buying on margin o world situation Dawes plan financial results of post WWI • domino effect US Germany GB &Fr US ← Black Tuesday October 29, 1929 • public loses faith in economy and call upon their debts owed • market cannot handle strain and collapses ← The Great Depression • poor decisions of the federal reserve o Should have Lowered interest rates expanded money supply o DID raised interest rates curtailed money supply • ill advised tariff o Hawley-Smoot Tariff Raised Tariffs 32%-40% on agricultural goods and manufactured goods tariff war other countries raise tariffs in response and international trade grinds to standstill • misdistribution of wealth o 70% of wealth controlled by 10% of population (rough figures) • Panic o Banks loaned out money deposited by customers o everyone goes to bank to withdraw, banks cant repay money and go bankrupt o millions of Americans lose entire savings • Key Terms o Hawley-Smoot • Herbert Hoover o 1928 “we in America today are nearer to the final triumph over property than ever before in the history of any land” • Hoover’s Plan o Uncomfortable w/ gov’t intervention o voluntary associations keep wages up, limit production DID NOT WORK o laissez-faire • Hoover’s policies o reconstruction finace corporation (RFC) 1932 to lend gov’t money to corp. and banks trickle down theory helping business and banks, not the individual o Glass-Steagall Act 1932 o Against giving money to avg citizens Feared welfare dependant class • Bonus Army o Congress offers bonus for WWI vets in a bond. Bond doesn’t mature till 1945 o 1922-20,000 vets come to the capitol and demand money now o set up camp outside capitol other shanty towns pop up across the country, dubbed “Hoovervilles” o Hoover refuses to meet w the vets o sends in Army led by Douglas mcarthur attacks shanty town setting tents ablaze, killing an infant • Franklin Delano Roosevelt o diagnosed w polio when he was 39 o gov of NY o reforms in the Democratic party gave him the front runner in 1932 election o good at putting smart people around him •...
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This note was uploaded on 04/21/2008 for the course AMH 2020 taught by Professor Michelleadams during the Spring '06 term at University of Central Florida.

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AMH 2020 - AMH 2020 The Depression and beyond 12:32:00 ← The Situation • Booming economy of the 20’s problems brewing under the surface o

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