Lecture Notes on the Great Depression (1929-1932)

Introduction

• Speaker: Mr. Drake
• Topic: Initial government reaction to the Great Depression (1929-1932)
• Duration: Approximately 10 years, began in 1929

Impact of the Great Depression

• Worst Year: 1932
  • High bank closures
  • Unemployment rate: 25% (highest in U.S. history)
• Social Impact:
  • Homelessness increased, formation of shantytowns known as "Hoovervilles"
  • Bread lines and soup kitchens were common, mostly funded by private organizations
  • Dust Bowl worsened conditions in Great Plains and western states, leading to migration
• Family Impact:
  • Men left families to find work, becoming "hobos"
  • "Migrant Mother" photograph represents hardship
  • Decline in birth and marriage rates

Government Response

• President Herbert Hoover
  • Conservative, laissez-faire approach
  • Belief in "invisible hand" of capitalism
• Policies and Actions:
  • Smoot-Hawley Tariff (1930):
    • Raised tariffs, leading to retaliatory tariffs
    • Reduced international trade
  • Public Works Projects:
    • Hoover Dam construction began in 1931
  • Reconstruction Finance Corporation (1932):
    • Aimed to support businesses and banks

Hoover's Downfall

• Election of 1932:
  • FDR (Franklin D. Roosevelt) promised a "New Deal"
  • Blame for Depression associated with Hoover
• Bonus Army Incident (1932):
  • WWI veterans demanded early payment of bonuses
  • Violent removal by army led by Douglas MacArthur
  • Negative public perception after incident
• FDR's Victory:
  • Won election convincingly, landslide in Electoral College
  • Took office in March 1933 amid worsening Depression

Conclusion

• Hoover's presidency marred by the Great Depression
• Transition to FDR and the New Deal aimed to recover the economy

Feel free to ask questions or leave comments if further clarification is needed.