1. Election of 1928
-Herbert Hoover
“Two cars in every garage”
-20’s marked a reign of prosperity
-Hoover predicts the end of poverty

2. Stock Market Crash
Warning Signs:
1. Speculation-risky investments.
2. Buying on Margin-purchasing of stocks by
paying only a small percentage of the price and
borrowing the rest.
3. Stock prices war inflated.
October 1929 prices began to fall.
October 29, 1929 (Black Tuesday)
1. Stock Market Crashes.

3. Causes of Depression
-Causes of the Depression:
1. Overproduction of goods.
2. Too much available credit.
3. Less consumption of goods.
4. Farm surplus.
5. High Tariffs
6. Unequal distribution of income.
7. No banking regulations.
Everything becomes a chain reaction.
Hawley Smoot Tariff of 1930—highest import
tariff ever in the history of the
United States.

4. Hard Times Hit Home
Hard times his homes and cities:
Shantytowns, soup kitchens, breadlines developed.
Rural Areas—foreclosure on farms. (No food supply)
Dust Bowl in the Great Plains (Mid-West)
Family Life:
1. Men on the move.
2. Hardships on women.
3. No health care for children.
Social Effects:
1. More suicides.
2. Mental illnesses.
3. Ethics and hard work.
Two families in every garage

5. Hoover’s Resolve
-
Rugged Individualism—the idea that people should succeed
through their own efforts.
Agencies were established to help businesses recover.
Federal Home Loan Bank Act—Lowered mortgage rates.
Reconstruction Finance Corporation—2$ billion for
emergency financing of banks, businesses, etc.

6. Election of 1932
-Franklin D. Roosevelt Governor of New York
pledges a New Deal for the people. To help the
common man.
Democrats win great majority in Congress.
Hoover remains a lame duck for several months.
Lame Duck is a person in office without being
re-elected to that position.
Government changes policy with the 20th
Amendment.
1. Inauguration of president changes from
March 4th to January 20th after a presidential
election.