Unit 6-2 Lesson (Hoover)

The Great Depression:

A devastating economic downturn in the United States during the 1930s, resulting in widespread unemployment, poverty, and social upheaval.

The Great Depression

The Great Depression was a severe worldwide economic depression that lasted from 1929 to 1939. It was the longest, deepest, and most widespread depression of the 20th century. The depression originated in the United States, after the fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929, known as Black Tuesday. The Great Depression had devastating effects on the American society, leading to high unemployment rates, poverty, and a decline in industrial production.

Multiple Choice

When did the Great Depression start?

• 1929

• 1939

• 1945

• 1950

The Great Depression

Trivia: The Great Depression started in 1929 and lasted until the late 1930s. It was the most severe economic downturn in modern history, causing widespread unemployment, poverty, and a decline in global trade. The stock market crash of 1929 is often considered the trigger for the Great Depression. During this time, many people lost their life savings and businesses collapsed. It had a profound impact on the lives of millions of people around the world.

Hoover's Philosophy

• Rejecting direct payments: Hoover believed that providing direct payments to the unemployed would undermine Americans' 'rugged individualism'.
• Voluntary private organizations: Hoover believed that emergency relief should be provided by voluntary private organizations.
• Lack of aggregate demand: Despite low prices, there was a lack of aggregate demand preventing economic recovery.

Multiple Choice

What was Hoover's belief about providing direct payments to the unemployed?

• Undermines Americans' 'rugged individualism'

• Should be provided by voluntary private organizations

• Causes lack of aggregate demand

• Promotes economic recovery

Hoover's Belief

Trivia: Hoover believed that direct payments to the unemployed should be provided by voluntary private organizations. He thought that this approach would maintain Americans' 'rugged individualism' and avoid undermining it. Hoover's belief was in contrast to the idea of providing direct payments by the government, which he believed would promote dependency and discourage self-reliance.

The Great Depression:

• Causes: Reduced money supply, Smoot-Hawley Tariff
• Hoover's Response: Tax cuts, increased federal spending, emergency loans
• Public Perception: Hoover's policies seen as inadequate

Multiple Choice

What was Hoover's response to the Great Depression?

• Tax cuts

• Increased federal spending

• Emergency loans

• Raising tariffs

Hoover's Response:

• Emergency loans: Hoover provided emergency loans to struggling banks and businesses during the Great Depression.
• Tax cuts: Hoover implemented tax cuts to stimulate economic growth and encourage consumer spending.
• Increased federal spending: Hoover increased federal spending on public works projects to create jobs and stimulate the economy.
• Raising tariffs: Hoover raised tariffs on imported goods to protect American industries, but this worsened the global economic downturn.

The Great Depression

The Great Depression and its Impact on American Society: Many families lost their homes because they were unable to pay their mortgages. Some families were lucky enough to move in with friends or family. Others were forced to take up residence in shacks as their only form of shelter. Shanty towns of the homeless and unemployed, called Hoovervilles, sprang up on the outskirts of cities. Between 1929 and 1933, about 100,000 American businesses failed. By 1932, at the end of Hoover’s term, unemployment had reached 13 million people – nearly 25% of the nation’s work force.

Multiple Choice

During the Great Depression, what were the makeshift shelters called?

• Hoovervilles

• Mortgagevilles

• Depressionvilles

• Storage Units

Hoovervilles

Trivia: During the Great Depression, makeshift shelters were called Hoovervilles. These were named after President Herbert Hoover, who was blamed for the economic crisis. Hoovervilles were often made of cardboard, tin, or scrap materials, and were characterized by their poor living conditions and overcrowding. They served as a stark reminder of the hardships faced by many during this time.