The Start of the Great Depression

Was Hoover responsible?

Herbert Hoover was nicknamed “the great engineer” because he made his fortune as a

mining engineer.

FARMERS

FARMERS

FARMERS

CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE

Before modern technology,

farmers usually made enough food for the

people in the city.

For example, farmers

produced 9 carrots and there are nine people

in the city.

FARMERS

FARMERS

FARMERS

CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE

Each person in the city gets 1 carrot. This keeps the price of carrots high

because there is just enough for everyone.

Carrots = $2.00

Farmers are happy.

FARMERS

FARMERS

FARMERS

CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE

With new technology…

…farmers can make more carrots

What will happen to the price?

FARMERS

FARMERS

FARMERS

CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE

The price of food went down

because there was too much production

and farmers started losing money.

Price of carrots =

$0.10

President Hoover believed that a Federal Farm Board provided a great solution to the

farming problem.

Cotton Farmers

Cotton Farmers

Cotton FarmersCotton Farmers

Cotton Farmers

Cotton Farmers

CITY PEOPLE CITY PEOPLE CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE CITY PEOPLE CITY PEOPLE

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

If each cotton farmer makes five cotton units each, there will be too much cotton for the city and the price will go

down.

Cotton Farmers

Cotton Farmers

Cotton FarmersCotton Farmers

Cotton Farmers

Cotton Farmers

CITY PEOPLE CITY PEOPLE CITY PEOPLE CITY PEOPLE CITY PEOPLE

CITY PEOPLE CITY PEOPLE CITY PEOPLE CITY PEOPLE CITY PEOPLE

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

cotton

Farm Board

Let’s work together and form

a cooperative

Cotton Farmers

Cotton Farmers

Cotton FarmersCotton Farmers

Cotton Farmers

Cotton Farmers

cotton

cotton

cotton

cotton

cotton

Farm Board

Let’s work together and form

a cooperative

The people on the farm board

encouraged less production to increase the

price on items like

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cotton

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cotton

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cotton

cotton

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cotton

cotton

cotton

cotton

cottonxxx

Cooperatives are when people work together

(cooperate) in a business because working together benefits all the workers.

Cotton Farmers

Cotton Farmers

Cotton FarmersCotton Farmers

Cotton Farmers

Cotton Farmers

cotton

cotton

cotton

cotton

cotton

Farm Board

Let’s work together and form

a cooperativeHoover believed

that all cooperatives

should be voluntary.

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cotton

cotton

cotton

cotton

cottonxxx

Hoover’s beliefs came from over 10 years of

working in government under many different

presidents.

I only want government involvement if nothing else is working. The government needs to stay out of people’s

lives.

Hoover only wants the government to get

involved if the cooperatives failed at

organizing food production.

GERM ANS

The French

Let’s tax the Germans every time they send us a Volvo. If the French want to send us

their crepes, we will tax them on those, too!

Many countries use tariffs to charge taxes to anyone who tried to sell things in their country

from another country.

THE BORDER

High tariffs from one country tend to make

other countries also want to raise their tariff levels.

Wheat Prices

Country #1Sells wheat for

$0.50

Country #2Sells wheat for

$0.60

American wheat

Sells for

Which wheat would you buy?

FARMERS

We want higher tariffs to protect our food prices.

Farmers didn’t want food from other countries to

undercut American prices.

Commission Commission Commission

Commission Commission Commission

Commission Commission Commission

Commission Commission Commission

Hoover also embraced the idea of

‘commissions.’ These are groups of experts in a field of

study who come together to give advice to the

Commission Commission Commission

Commission Commission Commission

Commission Commission Commission

Commission Commission Commission

Commission Commission Commission

Hoover learned from his commissions that

while it might be good to raise the tariff for farmers,

many other businesses would

benefit from a lower Commission Commission Commission

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

Congress

President

I hope they listen to reason…

Raise the

Raise the

Raise the

Raise the

Raise the Raise

the

Raise the

Raise the

Raise the

Raise the

Hoover’s difficultycontrolling congress.

Hoover failed at persuading congress and they passed the Hawley-Smoot tariff raising taxes on foreign goods to their

highest level ever.

GERMAN BANKS

French

Signal to the worldto raise prices…

Other countries saw the high US tariff as a signal that they should also raise

tariffs in their own country.

Steel Factory

Steel Workers Steel Workers Steel Workers Steel Workers

Steel Workers Steel Workers Steel Workers Steel Workers

Steel Workers Steel Workers Steel Workers Steel Workers

decrease in wage

decrease in wage

decrease in wage

Usually companies decrease wages during a time of depression because they are not making as much

profit.

Hoover was able to bring together a commission of

business leaders who agreed to keep wages the

same to try to stop a greater depression.

Despite all of these attempts, Hoover was

labeled by the democrats as a do-nothing president who did not do enough to

end the depression.