STOCK MARKET CRASH
It happened in 1929. Causes: Buying on margin was popular. Stock prices were inflated and didn’t have any real value. Federal Reserve increased interest rate. There was lack of Gov. Regulation.
Effects: Investors and businesses lost billions. The great depression settled in. Businesses laid off workers.
Causes of depression: overproduction of goods.
Effects of depression: Deficit spending starts. New deal made many organizations.
Cycle- companies lose money people get laid off, unemployment goes up profits fall so more people are laid off.
The dust bowl affected a lot of the farmers and forced them to leave their farms.
Okies were given to people who just packed up everything and moved.
McNary-Haugen Bill is similar to the AAA.
Hoover had a very ironic speech, Saying America will get better and get rid of poverty, he gave this speech the same year the stock market crash and great depression started.
Dow jones Industrial Average (DJIA) on of several stock market indicators created by Charles Dow
Hoover Dam is close to Vegas, it’s one of the positive things Hoover did. It costs $165 million.
FDR – 3 R’s- Relief for needy, Economic recovery, financial reform. Relief, reform, recovery.
Harry Hopkins helped FDR with many of the new deal organizations.
HOW WOULD WE HELP AMERICA??
If one of us was elected president during the great depression we would help America by strongly suggesting that the people who were doing ok allowed that people who severely needed help stay with them for shelter and meals, and work for them in return. We would also Provide some jobs, but would avoid cash handouts, which there were many of in reality. We would invest in somebody who could find a cheaper, easier way to produce goods and services that people could afford. People would not be chosen randomly for jobs, people with families or children would be selected first.
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