problem 1 Economy works on credit and Americans don t realize this is a 2 Stock market loans for stock investments 3 Start of The Great Depression next 4 years nothing to worry about a October 25 1929 series of plunges b November 13 multiple stock market crashes c Boom followed by bust economists see this as a cycle and d November and December market rises again e Americans are not concerned f Industrial production and construction crop prices etc drop in g Unemployment rate rises h Consumer spending drops and causes more economic problems i 1930 banks fail j 1931 more banks fail k America and Europe still on gold standard a Does not deny America s problems b Says he has a solution the country is fixable c New Deal first a GDP 1929 103 billion b GDP 1932 58 billion c Consumption 18 d Construction 78 fall e Private investments 88 fall i money deposits uninsured so people s savings are vanished 5 Economic Downturn of 1930s 4 FDR Inaugural Address f 900 banks fail g 100 000 businesses collapse h corporation profits fall 96 7 i unemployment rose to 25 a Economic outcomes are the product of individual character 6 Hoovers Response i Success goes to those who deserve it ii Economic failure is the people s fault not the stock market i Business community should regulate itself b Voluntarism c Cuts federal taxes to boost public spending d 700 million used by government to fund state projects to e Reconstruction Finance Corporation create jobs i Stimulate economic activity by providing loans to businesses ii Fails because it leant money too cautiously i People call for big government and Direct Aid Jacob Coxey f Could not let go of government restriction RR banks etc 7 Hoovervilles 8 Detroit Strike a Homeless areas where people lives in shanty towns b Hoover blankets newspapers for blankets a 5 workers killed and many more injured b battle for better wages a Veterans march on DC because they want pension from WWI b Set up camps near capital building 9 Bonus Army c Called out Gen Douglass MacArthur at army to remove Bonus 10 army from capital lawn i Burned down army camp sites 1932 Election a Rep Hoover b Dem FDR winner 11 12 Initiated reform and employment policies in NY i ii Distant cousin to TR iii Suffered polio 1933 US hits rock bottom a FDR still wants to save capitalism FDR s popularity a Connection to TR b Radio fireside chats where he talked to the people once a week c Charismatic able to use all political and presidential powers d Relied on Brain Trust from Ivy League graduates e Congress Senators like FDR New Dealers 15 bills in the first 100 days of FDR s presidency a banking failures b agricultural overpopulation c business slump d unemployment 14 Alphabet soup a Many agencies created b Government is expanding a If banks go bad they can t loan money b Can t loan money no new businesses c Emergency Banking Act 15 Banking 13 can prove they have enough money to reopen i FDR declared banking holiday where all banks close until they ii FDR tells people their money will be safe iii Banks re open March 13 iv Deposits exceed withdrawals because of American s trust in FDR
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