1. Causes of Stock Market:
: -uneven sharing of wealth
- not enough people buying things
-wages couldn't keep up with productions
-increase in gambling and buying stocks
-Tight Money Policy - Buying on Margin
- getting a loan from a broker
-making to much or not enough
- big gap between rich and poor
-shading banking
- they invested people money and put it in the stock market
- buying on credit
- debt
- overproduction of farm products
-Laize fare approach
-over speculation
Causes of Great Depression:
- Stock Market Crash- millionaires went broke.
-Banks were failing- and people were losing there money they had invested in these banks
-Reduction in purchasing
- people lost jobs so they stop spending money
- businesses didn't have money so they raised money
- money supply was decreasing
-American Tariff Policy
- putting tariffs on products from Europe
- hurt more than helped
- Smoot- Hawely Tariff
- Caused Europe to add tariffs to their things.
-Drought
- Great Plains
- Dust bowl - huge dust storms
- no crops could grow
- they all just left to city
2. What impact did the SMC and and GD have one lives of people in the US?
Homelessness
- a lot of people loss there homes to foreclosures.
- they started building small shacks
Starvation and Illness
- they lost there jobs so they could not afford a lot food.
- started soup kitchens
Unemployment-
- it was at an all time high
- many committed suicide because they had nothing
Bank Failures
- in 1933, 140 million people lost of money
Hooverville
- small shacks
- used what they had
- they were all close together
It was a worldwide depression
3. What did the US gov't do to help the Great Depression?
Hoover-
FDR-
New Deal- started organzations that are still around today
made the US larger
helped end the Great Depression, and get more money back
Second New Deal-
4. What long lasting impact did the GD have on US and World?
SEC- enforces security laws and to protect investors and keep markets secure
FDIC- protects money in banks by insuring the money will be there
Hard to get education, crime rates rose, health care was provided.
Relief programs we still have them
Smoot hawely taxed imported goods
FDR Creations-
Securities and Exchange Commission- make sure people follow the law
Tennessee Valley Authority- is federally owned and corporation by the government to help with flood control, electrically generations, fertilization manufacturing, and economic development.
Radio - allowed people to listen to sport events and world new
Electronics- washers, Tap pan Gas Range- first oven, GE thrifty six- new fridge- no ice
Sports- it got peoples mind off the Depression
- football- newly started
- boxing- very popular
- Baseball- blacks started to play
- Motorsports- powerboat and automobile and NASCAR racing, from boot legging
Vicious Cycle of the Great Depression-
- Companies loss money
- Unemployment rate goes up and less people buy goods as income drops
- Companies profits fall so they have to lay more people off or close
- Cycle repeats
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