Hoover’s 3 Strikes

The Great Depression

Occurs in October 1929 3 Causes

1) Gap between rich and poor- Before the crash, 1/10 of 1% (.001) of people had the same amount of wealth that the bottom 42% had

2) Big Businesses owned half of the businesses in America• This allowed them to set

their own price for goods

Black Tuesday

3) America was a Mass consumption societyPeople cannot buy anymore because of credit-

businesses crackBusiness crack- people get fired- Businesses crack

more- More people get fired Unemployment rate reaches 25%Income drops by 50% from 1929-1932

Strike 1Smoot Harley Tariff

(1930)- A tariff is placed on all imports (goods coming from other countries) from Europe

Goal: Force people to buy American-made products

Result: Europe passes tariffs on U.S and exporting businesses in the U.S collapse

Hoover’s Strikes

Strike 2Glass-Steagall Act (1932)- A law making it

easier for people to get loans by loosening credit

Goal: People get loans and spend money/buy things

Result: Not enough to help people or really effect the economy

Hoover’s Strikes

http://www.youtube.com/watch?v=xkmo4ygPTjc

Strike 3Bonus Army March (1932)-

A WWI veterans march on Washington to get bonuses they were promised by the government

Hoover doesn’t pay- veterans build a shanty town in D.C

Result- Hoover calls in army led by Douglas MacArthur

Burned the shanty towns- a PR nightmare for Hoover

Hoover’s Strikes