Causes of the Stock Market Crash-1929
Over speculation during the 1920s
Overproduction of goods
Buying on margin
Too much borrowing from banks
Federal Reserve increase interest rates
Lack of government regulation
Effects of the Stock Market Crash
Thousands of backs fail savings are wiped out
Businesses cut production lay off workers
People quit spending money
New deal programs start makes the US government much larger
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
Companies’ profits fall so they have to lay mare people off or close
Cycle repeats itself
Okies were people who packed everything up and moved to Oklahoma, and the government gave that land away
McNary-Haugen Bill
-In early 1924 Senator Charles McNary of Oregon and Representative Filbert Haugen of Iowa introduced a bill calling the following:
a.) 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 on world markets
Herbert Hoover
Became president in 1928
His speech was very ironic
a.) He said that he would banish poverty
He ran for reelection in 1932
Hoover Dam- was the only positive thing from hoovers presidency
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
Black Tuesday
October 29, 1929
Roosevelt- FDR Platform
Relief, Reform and Recovery
a.) Relief for the needy
b.) Economic recovery
c.) Financial reform
FDRs Brain Trust
a.) Harry Hopkins- social worker, and architect for most of the new deal programs
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