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 The Great Depression

Semester 2: Week 5 Notes

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Causes

There were multiple explanations for the decadeof depression which followed the roaring 2s!

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"ack#re!

$an% things in the &'2s (egan to make in)estorsskeptical of how well the econom% was doing!

&* The wealth% and poor were (ecoming further di)ided

2* Too man% stocks were (eing in+ated (% margin,Credit- (u%ing

.* /armers were struggling with low prices ando)erproduction since the wars end

0* 1solationist taris limited the market in other nationsfor 3S Goods

5* 3S /actories had o)erproduced and 4mericans wereunder consuming (% &'2'

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 TheCrash

1n cto(er &'2' in)estors (egan selling otheir stocks*

&* This prompted other in)estors to rush to

sell their shares2* The market plunged (% o)er &6.rd its )alue

.* 1n one da%7 8black Tuesday” the marketlost 9&&5 (illion

0* The crash wounded the nations econom%fostering a decade of economic depression

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 The% closed the stock exchange to outside)isitors (ecause the panic was so (ad*

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oo)er s=esponse

During the lead up to his election in &'2> ;oo)er

promised that the good times were here to sta%*;e promised 84 chicken in e)er% pot?

&* ;oo)er was a laisse@faire repu(lican whowanted to support (usiness get out of the

slump**

a* Tried to get factories to promise to keep open

(* Tried to get more mone% into the econom%

2* ;oo)er was reluctant to pro)ide relief to thepeople in direct pa%ments*

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 The Aeoples=esponse

Aeople turned on ;oo)er as the% sawhim not doing an%thing for their needs*

&* ;unger marches throughout thenation

2* /armers re)olting (% destro%ingcrops in hopes of dri)ing up prices

.* The homeless (uild 8;oo)er)illes?out of scrap materials

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;oo)er)ille

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"onus 4rm% /iasco

4 group of WW1 )eterans were promised a cash(onus ,9&7- for their ser)ice to (e paid in &'05

&* Beterans and their families marched toWashington and set up a 8;oo)er)ille? to gettheir (onus pa%ments earl%*

2* Senate )oted to den% the earl% pa%ment

.* ;oo)er sent 3S $ilitar% to clear out theremaining )eterans

0* 2 )eterans were killed in shootings7 gassing7 andma%hem that followed

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"onus 4rm%

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he Dust "owl

 To add insult to inur% a prolongeddrought com(ined with o)erfarmingcaused massi)e crop failures

&* $an% farmers were forced tomigrate west

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4 New Deal

During the election of &'.2 )oters were read%for a fresh approach to com(at the GreatDepression

&* N Democrat /ranklin Delano =oose)elt ,/D=-was promising a 8New Deal?

2* /D= was promising to kick the depression

with his three =