Finished up blog discussions, now Bruns will assign our individual power point project due next wednesday. He assigned us two topics - I have (Employment Projects) Federal Emergency Relief Act/Administration (FERA) and (Labor Relations) - National Labor Relations Act (Wagner Act) (NLRB).
Social and Psychological Effects - People lost everything - they were embarrassed so some committed suicide. They stopped going to the dentist, doctors, gave up dreams going to colleges and bettering their lives. But movies were successful during this time. People knew how to keep themselves entertained.
Hoover's Background - Born and Grew up in West Branch Oregon. Was orphaned because his parents died when he was ten. He was raised by many of his aunts and uncles, stayed in the family. Never finished high school but one of the first people to go Stanford. During colllege he met the love of his life - got married right after colleg - had 2 kids. Went to China and engineered there. While his wife worked in hospitals, he risked his life to save a bunch of chinese kids. Last cabinet director to become president. He wasn't the best president..
Hoover's Philosophy - He believed government should not get involved with the economy. He employers to not lay off people or cut wages, but doing this would make the company lose thousands of dollars. He wanted less government - government was gonna stay out of business - better for everyone, according to republicans and Hoover.
Bolder Dam Project - He decided he wanted a dam on the colorado river. He was big on spending money on projects. Tax electricity and give money to rich people. 6 companies began building on the dam - started 1931 and ended 5 years latter. A lot of people died making it. But it provided erogation, prevented floods, made electricity, popular to visit, controlled water flow. Known as Hoover Dam.
Democrats Win 1930 Congressional Election - Midterm election. Democrats take over. By 1930 people started blaming the democrats for the depression and Hoover told people to calm down and just wait, but it made more people mad. A vote against Hoover and Republicans.
Hoover Takes Action - He set up Farm Board - Helped members of it raise crop prices. National Credit Corporation - gave credit to small banks to help them. Help economy - passed bills. Federal Home Loan Bank Act - helped farmers lower payments for their home and farm. Recontruction Finace Corp. - It allowed Congress to give emergancy money to banks and big business. Example of trickle down theory in action. (Trickle down is gov. gives money to big businesses to help smaller ones.)
Bonus Army - Group of veterans from WW1 they were told in 1945 that they'd get a bonus for fighting WW1. They didn't care about the money until the depression hit. Were led by Walter Waters to Washington DC to try get their money earlier. Hoover welcomed them, set up tents, gave food and water. There was a bill that was supposed to be given to them, but it didn't pass. Some were upset, and went home - but others stayed and waited to protest. It made Hoover look not so good. He using military to force veterans out of DC. Troops needed help with money.
Causes of Stock Market Crash -
- buying things on credit (margine) - people bought stuff they couldn't afford - all money wasn't there.
- buying things and selling things constantly so prices went up - over speculation.
- People were greedy, it lead to a lot of fraud and corruption.
- Companies were making a lot of products, and people weren't buying them. (because they were poor, in debt - cause of credit, had enough things they bought so they didn't need anything more, raised interest rates.)
- Failure of the Federal Reserve System - set up by Woodrow Wilson - banks ran to this one for money - raised and lowered interest rates. When rates were low, people borrowed money and spent a lot of money too. Also led to massive debt. Then people started saving money, and not spending it.
- High tarriffs, Hoover passed a higher tarriff, thinking it would help.
Causes of the Great Depression -
- Stock Market Crash - no one had money, banks and businesses closed down, led to vicsious cycle of the depression. Farms closed down, people had no jobs.
- Government didn't get involved with the stock market crash, so it led to more monopolies.
- Higher Tarriffs - other countries aren't buying our goods, hurting the business.
- Drought expanded the great depression - Dust Bowl.
- Over production.
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