Cause of the Stock market Crash-1929
- Over speculation during the 1920’2
- Overproduction of goods
- Buying on margin
- Uneven distribution of wealth
- Too much borrowing from banks
- Stock prices were grossly inflated, did not have real value
- Federal reserve increased interest rates
- Lack of government regulation
Effects on Stock Market Crash
- Investors and businesses lose millions
- Thousands of banks fail-savings are wiped out
- Business cut production-lay off workers
- Unemployment rises-people quit spending money
- Great depression sets in
- Depression spreads to Europe and other parts of the world
Effects on the Great Depression
- New Deal programs start-makes the US gov’t much larger
- Deficit spending starts
- The New Deal creates many organizations that are still around today
- Fascist, military and communist dictators and junk
The Vicious Cycle of the Great Depression
- Companies lose so they lay people off
- Unemployment rate goes up and less people buy goods as income has dropped
- Companies profits fell so they have to lay more people off or close
- Cycle repeats itself
Dust Bowl
- Hurt the agriculture
- Withered the soil away
- Lots of erosion
McNary-Haugen Bill
- In early 1924, Senator Charles L. McNary of Oregon and Representatives Gibert N.Haugen of Iowa introduced a bill calling for the following:
- “A federal farm board was to be created to purchase surplus farm production at pre-World War 1 prices; the surpluses were to be stored until domestic conditions improved or until a decision was made to offer them world markets”
Hoover’s Ironic Speech
- “We in America today are nearer to the final triumph over poverty than ever before in the history of this land….We shall soon with the help of God be in sight of the day when poverty will be banished from his land.”
- Hoover in his acceptance speech in June, 1928
Dow Jones
- The Dow Jones Industrial Average is one of several stock market indicators created by Charles Dow
- Dow compiled the index as a way to gauge the performance of America’s stock market
- Today
Back Tuesday
- The day the stock market crashed
Boulder (Hoover) Dam
- 726 ft. high and 600 ft. thick at its base
- Located 34 miles from LV is one of the engineering marvels of the world
Relief, Reform, and Recovery
- Relief for needy
- Economic recovery
- Financial reform
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