Ch. 14 Test Topics:
-- Causes of the Stock Market Crash
1929- stocks on market, demand for these so prices rose. buying these on credit. people never believed the stock market was going to go down. stock prices were grossly inflated, did not have real value.
Overspeculation during the 1920's
people buying and selling stocks. playing the stock market.
Overproduction if goods
companies were making to many good, they werent making any money. companies werent making any money.
Buying on Margin
buying stocks on credit. brought many people into the market.
Uneven distribution of wealth
the rich got richer and the middle class and lower class(poor) went into debit. if it would have been more fair paying it wouldnt have been to bad.
Too much barrowing from banks
banks made it to easy for people to barrowing. then when they lost everything people couldnt pay it back.
Vicious Cycle of Depression
Companies lose money ---->companies lay off workers ----> more people have less money to spend-----^
Effects- banks closed, people lost their money, people were layed of worked, unemployment rate went up. great depression sets in.
--Causes of the Great Depression
overproduction of goods
underconsumption of goods by consumers- people didnt have money
agricultural slump due to overproduction- too many crops and no one will buy it
high protective tariff policies of the 1920's- so people would buy things in the US instead of overseas
taxes benefitting the rich- rich got richer poor got poorer people were in debit.
stock market crash
Effects-
new deals programs started
deficit spending starts - spending more than you take in.
Social security
1. 1928 Election(466)
2. Stock Market in the 1920's(466-468)
Stock- people buy bonds of stock, where you can buy and sell. to try to make money.
Dow Jones- top 30 publicly owned stocks- if the dow jones are going up then we are in a good period of time coca cola, home depot, McDondals, Walmart
2. Stock Market in the 1920's(466-468)
3. Story of the stock market crash-not the causes(467-469)
Charlie Mitchel- first saves the day and the stock market goes back up. then again the stock market drops begin. Friday things start to rebound. monday stocks to fall. Then Black tuesday the bottom falls out. Jan, Feb, March it starts to rebound but then really starts to falls again.
4. Banks and Business Fail
9,000 banks failed during the 1930's. and never to reopen. unemployment rose from 3% to 25%. 1933 was the worst year of the depression. 90,000 business failed during the depression.
5. Effects Stocks had on the world.
England- we stopped trading with them. Then with the gold standard caused South Africa. Then Germany was caused we stopped giving them loans
8. Dust Bowl(474)
100 million acres of crops were lost, in the great plains area, the dust killed lots of the lifestock and people caught pnemonia because of the storm. After the dust storm was over they influenced them to replant. And plant trees to help prevent another Dust Bowl.
9. Men in the Streets(475)
abandoned their families, couldnt afford to live there. They were very embarassed. close to 300,000 homeless men. Hoboes.
10. Women struggle to survive(475-476)
11. Children suffer hardships(476)
12. Social and psychological effects(477)
13. Hoover's background
14. 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)
Ch. 15 Test Topics
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