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== The Great Depression ==

== The Great Depression ==

Herbert Hoover won the presidency in 1928 as a Republican more liberal than Coolidge and Harding.  Hoover liked big business and sought its cooperation.  He opposed trust-busting and unions.  Hoover did cut taxes and was critical of Europe.

Herbert Hoover won the presidency in 1928 as a Republican who was more liberal than Coolidge and Harding.  Hoover liked big business and sought its cooperation.  He opposed trust-busting and unions.  Hoover did cut taxes.

But misfortune greeted him.  In 1929, the stock market suddenly crashed.  The era of prosperity was over.  The Great Depression had begun.  Historians blame this partly on speculators driving up stock prices to ridiculously high levels, but actually no one really knows what the cause of the Great Depression was.  Unemployment increased until it exceeded 20% in 1933, meaning that one out of every five families was out of work and likely without money also.

Economic misfortune then greeted him.  In 1929, the stock market suddenly crashed.  The era of prosperity was over.  The Great Depression had begun.  Historians blame this partly on speculators driving up stock prices to ridiculously high levels, but no one really knows what the real cause of the Great Depression was, and people still debate it to this day.  Unemployment increased until it exceeded 20% in 1933, meaning that one out of every five families was out of work and likely without money also.

Many historians blame tariffs as a greater cause of the Great Depression than the stock market crash was.  In 1930, Congress passed the Hawley-Smoot Tariff which increased tariffs, setting off a worldwide round of tariff increases in 1931, which worsened the worldwide Depression.  Historians also blame the Great Depression on the gold standard, a concentration of wealth among the relatively few, and unregulated speculation in the financial markets.  There is probably political bias in claiming that these were the causes of the Great Depression.

Many historians blame tariffs as a greater cause of the Great Depression than the stock market crash was.  In 1930, Congress passed the Hawley-Smoot Tariff which increased tariffs, setting off a worldwide round of tariff increases in 1931, which worsened the worldwide Depression.  Historians also blame the Great Depression on the gold standard, a concentration of wealth among the relatively few, and unregulated speculation in the financial markets.  There is probably political bias in claiming that these were the causes of the Great Depression.

In 1932, Hoover did create the Reconstruction Finance Corporation, which was a federal agency that lent money to banks, and later lent money to businesses also.

In 1932, Hoover did create the Reconstruction Finance Corporation, which was a federal agency that lent money to banks, and later lent money to businesses also.

Hoover had to face a [[pathetic]] march in D.C. by poor soldiers from World War I who demanded a bonus.  Called the "Bonus March," this ended in riots and was a political disaster for Hoover.  Future generals George Patton, Dwight Eisenhower and Douglas MacArthur put down the riots using tanks and troops, fearing that the nation was on the verge of a communist revolution.<ref>http://www.spartacus.schoolnet.co.uk/2WWpatton.htm</ref>  Today troops are almost never used to deal with domestic violence, because it causes such harsh emotions.

Hoover had to face a [[pathetic]] march in D.C. by poor soldiers from World War I, who demanded a bonus.  Called the "Bonus March," this ended in riots and was a political disaster for Hoover.  Future generals George Patton, Dwight Eisenhower and Douglas MacArthur put down the riots using tanks and troops, fearing that the nation was on the verge of a communist revolution.<ref>http://www.spartacus.schoolnet.co.uk/2WWpatton.htm</ref>  Today troops are almost never used to deal with domestic violence, because it causes such terrible emotions and turns Americans against fellow Americans.

The Great Depression caused many voters to switch to the Democratic Party, which took control of the Presidency (through FDR) and Congress in 1932.  After winning control of Congress and the White House, the Democrats ended Prohibition by passing an amendment to repeal it.  They began enacting many new laws and programs to try to generate jobs.

The Great Depression caused many voters to switch to the Democratic Party, which took control of the Presidency (through FDR) and Congress in 1932.  After winning control of Congress and the White House, the Democrats ended Prohibition by passing an amendment to repeal it.  They began enacting many new laws and programs to try to generate jobs.