-
banks loaned out large sums for stock speculation and consumer credit. The cycle of lost savings, fewer loans, and shrinking spending deepened the Depression. -
31st President of the U.S. (1929–1933).
Republican, former mining engineer and humanitarian
Took office in March 1929 -
The worst day—over 16 million shares were traded. Prices collapsed, wiping out fortunes in hours.
Investors panicked and sold millions of shares. Banks and big companies tried to buy stocks to stabilize prices, but confidence was shaken. -
Meant to protect U.S. industries. Instead, they reduced international trade, as other nations retaliated with their own tariffs. -
When World War I veterans marched on Washington demanding early bonus payments, Hoover refused and had the military forcibly remove them, which hurt his popularity. -
Elected 1933 - 1945
He launched the New Deal, a series of government programs and reforms designed to provide relief, recovery, and reform: Relief: Immediate aid for the unemployed and poor (Civilian Conservation Corps, Works Progress Administration). Recovery: Programs to rebuild the economy (Agricultural Adjustment Act, National Industrial Recovery Act). Reform: Long-term changes to prevent future crises (Social Security Act, banking reforms like the FDIC). -
Franklin D. Roosevelt declared a “bank holiday” to stop the panic.
The government inspected banks and only reopened those that were financially sound. -
Used radio broadcasts to speak directly to Americans, restoring confidence in government and banks. -
The FDIC (Federal Deposit Insurance Corporation) was created to insure deposits, so people would never again lose their savings if a bank failed.