Week Nine Lecture

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  • (copyleft 2008) Chad David Cover. Attribution-Noncommercial-Share Alike 1.0 Generic. See http://creativecommons.org/licenses/by-nc-sa/1.0/
  • Week Nine Lecture

    1. 2. <ul><li>Weak Manufacturing Economy </li></ul><ul><li>Over-production </li></ul><ul><li>Under-consumption </li></ul><ul><li>Weak Financial Institutions </li></ul><ul><li>Speculation & Unregulated Securities Market </li></ul><ul><li>European Banking Collapse </li></ul><ul><li>Weak Agricultural Economy </li></ul><ul><li>Weak Wholesale Prices </li></ul><ul><li>Foreclosures </li></ul><ul><li>Dust Bowl </li></ul>
    2. 3. <ul><li>October 29, 1929 </li></ul><ul><li>Investors lose billions. </li></ul><ul><li>Unemployment skyrockets : ½ to 4 million </li></ul><ul><li>Economy falters: </li></ul><ul><li>Stock fall again in 1931. </li></ul><ul><li>Real wages drop by 16% by 1931. </li></ul><ul><li>By 1933: 1) 15 million unemployed 2) GNP down by 29% 3) Construction down by 78% 4) Manufacturing down by 54% 5) Investments down by 98% </li></ul>
    3. 15. <ul><li>Hoover maintained that the economy was on a “sound and prosperous basis.” Hoover’s attempt to fight the depression: </li></ul><ul><li>Restore Business Confidence </li></ul><ul><li>Fight calls for government intervention </li></ul><ul><li>Voluntarism </li></ul><ul><li>Localism </li></ul><ul><li>Ineffectual due to: </li></ul><ul><li>Government Blunders (raised interest rate & tariff) </li></ul><ul><li>Federal aid offset by cuts in state spending </li></ul><ul><li>Persistence of depression undermined local charity </li></ul>
    4. 18. <ul><li>Unemployed Councils </li></ul><ul><li>Rent Parties </li></ul><ul><li>Farmer’s Holiday </li></ul><ul><li>Sharecropper’s Unions </li></ul><ul><li>Southern Tenant Farmer’s Union </li></ul><ul><li>Ford Hunger March </li></ul><ul><li>Bonus Army </li></ul>

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