Crash and Depression
Crash and Depression
Crash and Depression
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<strong>Crash</strong> <strong>and</strong><br />
<strong>Depression</strong><br />
Bust <strong>and</strong> Bummer
Song: We'd Like to Thank You Lyrics<br />
Today we're living in a shanty<br />
Today we're scrounding for a meal<br />
Today I'm stealing coal for fires<br />
Who knew i could steal<br />
I used to winter in the tropics<br />
I spent my summers at the shore<br />
I used to throw away the paper--<br />
we don’t any more<br />
We'd like to thank you: Herbert Hoover<br />
For really showing us the way<br />
We'd like to thank you: Herbert Hoover<br />
You made us what we are today<br />
Prosperity was 'round the corner<br />
The cozy cottage built for two<br />
In this blue heaven<br />
That you<br />
Gave us<br />
Yes!<br />
We're turning blue!<br />
They offered us Al Smith <strong>and</strong> Hoover<br />
We paid attention <strong>and</strong> we chose<br />
Not only did we pay attention<br />
We paid through the nose.<br />
In ev'ry pot he said "a chicken"<br />
But Herbert Hoover he forgot<br />
Not only don't we have the chicken<br />
We ain't got the pot!<br />
Hey Herbie<br />
You left behind a greatful nation<br />
So, Herb, our hats are off to you<br />
We're up to here with admiration<br />
Come down <strong>and</strong> have a little stew<br />
Come down <strong>and</strong> share some<br />
Christmas dinner<br />
Be sure to bring the missus too<br />
We got no turkey for our stuffing<br />
We'd like to thank you, Herbert Hoover<br />
For really showing us the way<br />
You dirty rat, you Bureaucrat, you<br />
Made us what we are today<br />
Come <strong>and</strong> get it, Herb!
Hawley-Smoot Tariff<br />
Raised duty on some imported goods to<br />
nearly 60 percent<br />
Europeans saw this as economic warfare<br />
Forces US into economic isolation<br />
World wide depression increases
Causes of the Stock<br />
Market <strong>Crash</strong><br />
<br />
<br />
<br />
<br />
<br />
<br />
Overproduction <strong>and</strong> the excessive use<br />
of credit main causes of crash<br />
Other causes<br />
uneven distribution of wealth<br />
weak farm economy<br />
overproduction of consumer goods<br />
practice of buying stocks with borrowed<br />
money
Hoover <strong>and</strong> the<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>Depression</strong><br />
Hoover provided the following<br />
state <strong>and</strong> local relief programs<br />
Encourage the American tradition of rugged individualism<br />
Encourage private volunteer efforts<br />
Federal assistance for banks <strong>and</strong> railroads<br />
Economic indicators<br />
farm prices (went down)<br />
national income (went down)<br />
GNP (went down)<br />
earnings (went down)<br />
unemployment (went up)<br />
Bonus expeditionary Force March (Herbert Hover <strong>and</strong><br />
Douglas MacArthur)<br />
WW I veterans tried to pressure Congress to pay them<br />
their retirement bonuses early.
New Deal Policies –FDR’s<br />
experimention with new programs for<br />
economic <strong>and</strong> social reform<br />
Glass-Steagall Banking Reform Act—provides for<br />
the Federal Deposit Insurance Corporation—<br />
insures individual deposits in banks.<br />
“Managed Currency” increase the Govts. price of<br />
gold from $21 to $35. (what does this do)<br />
This increases dollars in circulation, causing<br />
inflation (relieve debtors burdens <strong>and</strong> stimulate<br />
production
New Deal Policies<br />
<br />
<br />
<br />
The National Industrial Recovery Act-(“fair<br />
competition”, limit work hours so business will<br />
hire more workers, minimum wage, Unions<br />
can pick their representatives)<br />
Supreme Court says no—Congress can not<br />
delegate legislative powers to the executive<br />
branch<br />
The New Deal implemented theories of John<br />
Maynard Keynes that stressed the importance<br />
of deficit spending for “pump priming”
Second New Deal-more<br />
experimentation<br />
<br />
<br />
<br />
<br />
the Wagner Act-the right of unions to bargain<br />
collectively<br />
the Works Progress Administrationemployment<br />
on useful projects, buildings,<br />
bridges, roads<br />
the Resettlement Administration- help move<br />
dustbowl farmers to better l<strong>and</strong><br />
Indian Reorganization Act-reverse the Dawes<br />
act <strong>and</strong> establish tribal self-government
the Social Security Act<br />
provided-<br />
Unemployment insurance<br />
Support for the blind <strong>and</strong> disabled<br />
Old-age pensions
Tennessee Valley Authority—TVA<br />
(Hydroelectric)<br />
Purpose--Put thous<strong>and</strong>s of people to work<br />
<strong>and</strong> reform the power monopoly<br />
Private power companies accused of<br />
“gouging” <strong>and</strong> TVA would be a “yardstick” to<br />
measure pricing.<br />
Critics said Govt. control of power would<br />
lead to socialism
FDR New Deal<br />
Problems<br />
<br />
<br />
The clash between FDR <strong>and</strong> the United<br />
States Supreme Court over New Deal laws<br />
best illustrates the operation of checks <strong>and</strong><br />
balances<br />
In response to conservative rulings of the<br />
Supreme Court, President Roosevelt took<br />
action that resulted in his first major<br />
legislative defeat (tries to pack court)
New Deal Changes<br />
<br />
<br />
<br />
<br />
<br />
Roosevelt’s use of federal deficit spending<br />
A shift of the majority of African Americans<br />
voting for Rep. to Dem c<strong>and</strong>idates<br />
Passage of the Social Security Act<br />
Increased power of labor unions<br />
In the 1930s, one factor that accounted for<br />
the westward migration of farmers from the<br />
Great Plains was the dust bowl
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