Escolar Documentos
Profissional Documentos
Cultura Documentos
Purchases
Producers
Wages (Jobs)
Consumers
3. Over-speculation in Stocks
A Get Rich Quick attitude caused many
to speculate.
People risked everything by buying on the
margin.
When the market collapsed, these
investors lost everythingbanks collapsed
because loans weren't repaid
5. Farming Crisis
Farmers suffered through droughts and
low prices.
With low prices, farmers were unable to
repay their loans or purchase goods.
More banks collapsed.
6. Government Mistakes
The government set low interest rates
before the crash and raised them
afterward.
Stock market speculation was
unregulated.
Bank deposits were not guaranteed.
Summary of effects
Unemployment: 25%
Homelessness
Hunger
Psychological
depression
More Cooperation
Part 3: Solutions
At first, President
Hoover favored the
traditional government
approachdo little and
wait for things to get
better.
Private charities were
responsible for helping
the poor
Hoovers Attitude
I do not believe that the power and duty of
the general government ought to be
extended to the relief of individual
sufferingthough people support the
government, the government should not
support the people.
--Herbert Hoover, 1930
Election of 1932
By 1932, the
American people
wanted new
leadership.
Democrat Franklin
Delano Roosevelt
(FDR) easily defeated
Hoover.
Roosevelt promised
the American people a
New Deal.
Other Programs:
FDIC
The Federal Deposit
Insurance
Corporation
guaranteed bank
depositsthis helped
restore confidence in
banks.
Wagner Act
Guaranteed the right of workers to join
labor unions.