Great Depression.docx - Great Depression 1929-1940 In a...

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Great Depression, 1929-1940In a time of economic crisis, the new Deal preserved democratic capitalism in the United States through aggressive governmental intervention.October 1929: the stock market crashes—not the cause of the depression, but a symptom of the depressionHebert Hoover, U.S. President 1929-1933-blames Mexican for depression-82,000 Mexicans immigrants deported by gov even if they came to US legally-300,000 Mexican in the SW “volunteered to leave-1/3 of Mexican residency In Tx went back to Mexico- President took the blame: Hebert didn’t do enough to intervene & help workers & he didn’t recognize the truth however he was not the cause-didn’t pass federal minimum wage bc thoughtlazy peopleCause:-production but overproductionNot enough people buying everything that is being produced-expansion of creditStores & credit card companiesCan’t pay debtDefaulting in payments, so banks start to fail9000 banks fail in the 1930People Loose savings because people weren’t paying Domino effectBuying stock on margin recklessly-disparity of wealthVery rich people but majority not rich (1%)Upper 1% had as much wealth as the lower 42% They weren’t spending money on stuff that could help the economy in general-lack of regulationNo banking laws that could be requiring banks to be responsibleBanks’ lending money and giving credit recklesslyStarts in 1929 and things start taking a domino effect-Unemployment rate:-25% by 1933 high rate of unemployment-50% of Americas were living in constant struggle & homeless-Female workers were fired before men were-African Americans-Were layed off. First before white-2/3 66% prevent African Americans were unemployed
-Homelessness-Hoovervilles-temporary HOUSING-desperate conditions

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