Monday- The Great Depression 1929-1940
- Buying on credit
- Republican Philosophy- Harding, Coolidge, Hoover
- Lassez-faire, rugged individualism, trickle down theory
- Stock
- Stock market
- Dow Jones Idutstrial Average- Controls the stock market if it goes up so does everything else vis versa.
- Buying on margin- buying stocks on credit
- Watered stock- overpriced stock.
- Stock pooling- Sharing stock to make a lot of money
- Speculation-with stocks- Someone who thought the stock market was going up.
- Income inequality-The rich were getting more than the middle class
- Federal Reserve Board-
Dow Jones
- The Dow Jones Industiral Average is one of several stock market indicators created by Charles Dow in 1896
- The Dow Jones consists of 30 of the largest companies in the US
- The Dow is an overall indicator for how the stock market is doing.
5 Big Companies
- Verizon
- Walt-Disney
- Apple
- Boeing
- Nike
Tuesday- Federal Reserve System
- Created in 1913 under President Woodrow Wilson
- Major goal was to stop banking panics(runs)
- Broke the country into 12 districts each with a Federal Reserve Bank
- Bankers Bank-stop bank runs
- Controls the amount of money in circulation
- Controlling inflation and deflation
- Controls interests rates for borrowing money
- Encourages people to borrow money for big purcheses-homes, cars, etc.
- Wednesday- No school
Thursday-
Causes of Stock Market Crash
- Stock Prices were grossly inflated, did not have real value-watered stock prices
- Overspecultation during the 1920's- led to overpriced stocks
- "Buying on margin" led people being in debt and watered stock prices.
- Overproduction of goods
- Uneven distribuition of wealth
- Too much borrowing from banks
- Federal Reserve increased interest rates
- Lack of government getting involved
Effects of the Stock Market Crash
- Investors and buisnesses lost millions of dollars
- Buisinesses cut production-laid off workers
- Unemployment rose-people quit spending money
- Great Depression started
- Depression spread to Europe and other parts of the world
Causes of the Great Depression
- Overproduction of goods
- Underconsumption of goods by consumers
- Agricultural slump in 1920's due to overproduction
- High protective tariff policies of 1920's
- Taxes benefiting the rich- Trickle-down
- Stock market crash
- Bank closing
Effects of the Great Depression
- New Deal programs start-makes the US gov't much larger
- Deficit spending starts
- The New Deal created many organizations that are still around today-social security, welfare
- Fadscist, military and communist dictators come to power throughout the world
The Vicious Cycle of the Great Depression
- Companies lose money so they lay people off
- Unemployment rate goes up and less people buy goods as income has dropped
- Compaines profits fall so they have to lay more people off or close
- Cycle repeats itself
Friday-
Dust Bowl
- When an area of land where vegetation had been lost and soil reduced to dust and eroded, especially as a consequence of drought or unsuitable farming practice.
- Okies- people who just took their stuff and left to go west.
Herbert Hoover
- Hoover was viewed as uncaring and as a President who did very little to help with the Great Depression
- This was not acutally true
- Encouraged people to be patient, stay possitive and volunteer to help each other
- Federal Farm Board- Stabilized prices and to promoted the sale of agricultural products
- Norris-La Gaurdia Act- Strengthened labor unions
Hoover Moratorium
- One year halt on German war payments to France
- One year halt on war payments from Great Britain and France to the U.S.
- Mexican Repatration- Mexican imigrants were encouraged/forced to go back to Mexico
- Revenue Act of 1932- Increased taxes to U.S. gov't had money
- Hawley-Smoot Tariff- Raised tariffs to record levels
President's Organization for Unemployment Relief-1931
- Help U.S. citizens who lost their jobs due to the Great Depression
- Its purpose was to coordinate local welfare agencies without spending government money
- The program ended on June 30, 1932 because the gorvernment ran out of money.
Boulder(Hoover) Dam
- Boulder Dam (now Hoover Dam) Is located near Las Vegas
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