Depression: Effects & Cures (Chapter 13, section 4 & Chapter 14)
- move to the LEFT politically
- communist party  received 100,000 votes in 1932
- socialists 890,000 votes in 1932 (2.2%)
- prohibition repealed in 1933 – stimulated some parts of the economy
- Hoover insists things will get better soon, industry maintained a public confidence
- Hoovervilles – 15,000 homeless in NYC, shanty towns
- Migration to the west from the Midwest, dust bowls & foreclosures
- Men were shamed, divorce rate dropped, weddings postponed, working women accused of taking men’s jobs away, Ford Motor Company fired 82 women whose husbands had no jobs, discrimination increased, bank runs
- Hoover’s response:
- Voluntary actions by industry (EX: hold wages firm – did not occur)
- Government spends to create jobs:  Hoover Dam, roads, parks
- Raised tariffs on imports – backfired (Europe raised their own tariffs, slowing international trade)
- Gave credit to banks to extend loans, helping people at top would help the whole pop.

ROOSEVELT’S NEW DEAL
- close the banks (5400 banks had closed with over 3 billion in assets)
- FDIC up to 5000 dollars
- Gave 5 million to relief agencies
- Public works programs
- Jobs building roads, parks, airports
- 4 million employees
- 2.5 million unmarried male workers in Civilian Conservation Corps – restore parks, beaches – paid 1 dollar a day
- set a minimum wage, gave organized labor collective bargaining rights, regulated production & prices – backfired & overproduction returned as higher wages increased prices
- Federal Securities Act: full disclosure of information about stocks for sale
- Securities & Exchange Commission: regulate stock market
- Federal Reserve Board: regulate buying on margin
- Helped refinance homes of middle income people
- Brought electricity to middle valley Tennessee

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