The Great Depression

Stock Market Crash, 1929

Causes

Internal

Maldistribution of wealth

Limited market for consumer goods

Speculation

External

Loans and reparations

Initial Response

Hawley-Smoot Tariff, 1930

Federal Reserve Board Raised interest rates

Consequences

Economic

John Maynard Keynes

Family

Protest

Bonus Army, 1932

Farm Holiday Movement, 1932

Political Solutions

Hoover’s approach

Reconstruction Finance Corporation, 1932

Reasons why it failed

Alternatives

Communist – “Heyday”

Socialist

Fascist

Election of 1932

Franklin D. Roosevelt v. Hoover

And the winner is…