Causes of stock market crash-People were in debt from buying on credit-Companies were losing money b/c people didn't have money to purchase items-People were buying stock on margin-buying stocks on credit-Stock prices grossly inflated-over production of goods- companies weren't making money-uneven distrubution of wealth-rich got richer-poor went into debt-too much borrowing from banks-Federal reserve increased interest rates-wanted people to stop buying-killed economy-Lack of government regulationEfects:-Investors and businesses lose millions $$$-Thousands of banks fail-savings are wiped out-businesses cut production-lay off workers-unemployment rises-people quit spending money-Great Depression sets in-Depression spreads to Europe and other parts of the world--Causes of the Great Depression-Overproduction of goods-Underconsumption of goods by consumers-people weren't buying-Agricultural slump due to overproduction-too many crops-prices went up-High protective tariff policies of the 1920's-Taxes benefiting the rich-rich got richer,poor got poorer-Stock marker crashEffects:-New Deal programs start-make the US gov't much larger-Deflict spendign starts-The New Deal creates many organizations that are still around today-social security-Facist, military and communist dictators come to power throughout the worldVicious Cycle of Depression-Companies lose $$ 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 more people off or close-Cycle repeats itself1. 1928 Election(466)--Herbert Hoover-Republican-prohibition-economic-better on radio-Won Election*--Al Smith-Democrat-get rid of prohibition-hurt election-better speaker-catholic-people afraid of country turning into catholicism2. Stock Market in the 1920's(466-468)-Stock value went up-No regulations in the stock market3. Story of the stock market crash-not the causes(467-469)-March 1929-stock market had some bad days-Stock crashed 11%-people were scared they were going to lose everything-Black Friday things rebounded-on black monday the market crashed 13%-On lack Tuesday it dropped another 12%-only 5% of people were in the stock market4. Banks and business' collapse(469)-Stock prices went up and people tried selling stocks-There was credit expansion-People were taking money out of banks until the banks had no money to give out-Businesses failed b/c people stopped spending money-Businesses had overproduction of goods-they weren't making money-had to lay people off-Many people lost their savings5. Effect stock market crash had on other countries(469-471)-European countries- Germany was doing poor-U.S loaned money to Germany-Japan struggled which led to military taking over-Depression helped usher in dictators6. Depression in the cities(472-473)-Manufactureres couldn't make automobiles and railroads-had to lay off workers-Many people comitted suicide b/c they didn't think the economy was going to get better-Crime went up when people started joining mafias and running illegal casinos7. Depression in the rural areas(473)-Led to starvation b/c men couldn't afford to buy equipment to harvest crops-Built character in people b/c they learned the value of the dollar and learned to appreciate what the had-Farmers had too much and the prices would drop-Farmers would ruin crops to make the value of crops go up8. Dust Bowl(474)-1930-1936-Caused b/c farmers didn't do crop rotation and wind picked up dust-Severe drought-All the dust and went southward and eastward-Storms called black blizzard b/c you couldn't see in front of you-many left their homes b/c it was covered in dust-Okies were people who left Oklahoma and moved to California9. Men in the Streets(475)-homeless rates went up high b/c people were laying off worker-Many became migrant workers-(hobos)-Hoovervilles were along side train track-they were small towns people stayed at-Didn't get better for them until WWII-Homeless rates were as high as 25% during the great depression10. Women struggle to survive(475-476)11. Children suffer hardships(476)-Many women abandoned their husband and kids-Many children got ricketts-2,000 schools closed-many didn't have an education-Many teenagers ran away for one less mouth to feed-Many worked to help their parents out12. Social and psychological effects(477)13. Hoover's background14. Hoover's philosophy/Cautious steps(479)15. Boulder Dam(480)16. Democrats win 1930 Congressional elections(480)17. Hoover takes action(481)18. Bonus Army(482-483)
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