The Great Depression Hoover vs. Roosevelt

The Great Depression Hoover vs. Roosevelt By: Alex Cisneros Mrs. McEmoyl P.6

Causes • Hawley Smoot Tariff • Installment Plan • Stock Market Speculation • Over Production • Unequal Distribution of Wealth • Dust Bowl

Hawley Smoot Tariff • Damaged American sales abroad because imports now cost much more. • Increased taxes. • Other foreigners started doing the same, increased taxes on U.S. products.

Installment Plan • The Installment Plan was a source in which Americans would use credit plans to purchase such consumer goods like vacuum cleaners, washing machines, radios, and other home appliances. • Many people who bought high-cost items reached a point where they were not able to pay off their debts because many banks failed to have people’s money due to stock values collapsing therefore the consumers had no money to back up the items.

Stock Market Speculation • For a while things were good in the U.S. for the moment because the increase of companies was causing growth to the economy with technological inventions being discovered. • Oct. 24, ‘’Black Thursday,’’ was when The New York Stock Exchange plummeted, leading to The Great Depression of the 1930s • Oct. 29, of 1929 ‘’Black Tuesday,’’ 50,000,000,000 were vanished leaving many people broke.

Over Production • businesses were not cutting back on making products. • Mass production, too many products being made buy companies and having to sell them cheaper. • There was increased manufacturing and agricultural output, but wages for industrial workers and other laborer, and income for farmers, did not keep pace for the consumers to purchase all that was produced or grown

Unequal Distribution of Wealth • The imbalance of wealth created an unstable economy during the great 1920's depression. • The currency of wealth was not flowing fairly enough to stimulate the economy. • People ran on banks and banks collapsed, which in turn meant people losing their savings.

Dust Bowl • Dust was everywhere in Kansas, Oklahoma, Texas, New Mexico and Colorado. • Too much of the soil became to dust so crops didn’t grow. • Thousands of farmers lost their farms. • was a very deserted place. • Many migrants moved to the west for a better life.

Hoover’s Ideas • Boulder Dam, was designed to jump-start the economy and add jobs. • Federal Home Loan Bank Act, which lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure. • The New Deal, Helping 6 million people become employed • Reconstruction Finance Corporation, authorizing to provide emergency financing to banks, life insurance companies, railroads and other large businesses.

Roosevelt’s Ideas • Roosevelt had the goal of getting people back to work. • Getting them fed and sheltered and fixing the economy. • He came up with an idea to have the men and some women, work on construction projects like building dams, roads and other things.

Comparing The Ideas • Both Hoover and Roosevelt had ideas on putting an end to The Great Depression. • They both wanted people to have jobs and end the homeless living economy.

Programs America Still Has Today • Social Security Act of 1935 • The Wagner Act • Fair Labor Standards Act • Securities Act of 1933 • TVA • Securities and Exchange Act

Sources • http://useconomy.about.com/od/grossdomesticproduct/p/1929_Depression.htm 1/31/13 • http://www.thegreatdepressioncauses.com/facts.html 2/2/13 • http://www.lewrockwell.com/rothbard/rothbard184.html 2/5/13 • http://www.ehow.com/about_4597060_homeless-population-during-great-depression.html 2/4/13

The Great Depression Hoover vs. Roosevelt