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Unformatted text preview: 1930s Hoover: In 1928, he was a great candidate to run for the Rep party His political philosophy was: Dont use the government power to force change on the economy and big business, he believed that things would change on their own. He won easily in 1928 He went down as a really bad Pres., especially during the Great Depression, b/c he didnt like to use government power I. The Beginning of the Great Depression A. The stock market crashed in 1929. B. People thought that things were great in the 20s but there were some problems A. Causes Problems with the 1920s 1. In 1924, there was a dip in the sale of durable goods 2. In 1927, there was somewhat of a recession so the Federal Reserve board lowered interest rates to provide spending 3. However, the country seemed to be receiving itself on borrowed money- a lot of people and businesses were borrowing money and putting it into the stock market b/c the stock market was surging 4. B/c the market was so hot and people kept putting buying the stock 5. 1925 $27 billion; 1928 $67 billion; 1929 before the bonding crashed- Great Depression- the net worth of stock was over $80 billion 6. The market had some troubles on Oct 23rd and 24th and 28th the market crashed! 7. Stock market crash by itself does not devastate the economy but the problem in 1929, the economy was very weak and had major problems; it triggers a series of events that make the economy even worse and only few people got the idea that the market was not a good place to be anymore and got out but everyone else didnt know/care. Real estate marketing crashes 2nd problem: big banks start going bankrupt and going under which causes the small banks to go under There were some people who saved them money for a rainy day but when the banking systems are going under, there goes your savings White collar workers were doing really well! Industry was more profitable than ever before but this industry was not distributed evenly The wealth division is so great that most of the wealth is going to a small % of white collar workers and a small amount going to blue collar workers which isnt good b/c these blue collar workers do not make enough to buy all of the products which really causes the depression over a number of years Market crashes in 29 but in 30 it levels out and the problem was that it did so nothing happened and The economy didnt hit rock bottom until 1933 until the gross national product was cut in half (BAD) Unemployment was super high @ 25% unemployment and the workers who did keep their jobs worked less hours and made less money If matters couldnt get any worse, a drought hit the Midwest B. Conditions Country side people fended for themselves a lot better than the city people did The middle class took it the worst of anyone II. Hoover responds 1. He thought that the government should not get deeply involved The government should facilitate private solutions instead of relief...
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- Spring '08