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Unformatted text preview: THE GREAT DEPRESSION I. PRESIDENT HOOVERdecade of republican presidents A. 1928 ELECTIONCoolidge decides not to run, opens the door for Hoover Smith runs against Hooveropposite of Hoover Hooverself made man B. HERBERT HOOVER Devoted to public service Concerned with poverty of farmers Hawley Smoot Tariffraised tariff to all time high II. THE GREAT DEPRESSION A. THE STOCK MARKET CRASH Americans assume that the economy will keep getting better Lead to get rich quick schemes Stock prices rise on pure assumption People start taking out loans to buy stockbuying stock on margin Everyone ignoring signscar sales down, consumerism down, but stock is going up October 29, 1929black Tuesdaystock exchange drop dramatically Eventually stock exchange crashes DID NOT CAUSE THE GREAT DEPRESSION Only 3% of Americans owned stocks B. CAUSES OF THE GREAT DEPRESSION 1. BANKING SYSTEM Structural weaknesses in banking system Small banksunstable Inability of borrowers to pay back loans...
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