1. What were the causes of the stock market crash of 1929 and the Great Depression?
- Stock market- buying part of a product and trying to sell it for more than you bought it for
- Buying on margin
- Barrow money from broker
- Pay for 10%-20% of stock
- Barrow 80%-90% of stock
- "Margin call"
- Overproduction and consumption of goods
- Businesses kept producing goods
- No common man needed could afford goods
- Wealthy were only people buying
- Stock went down
- Banks investing
- Took people's money
- Invested it in the market
- Started losing money in market
- Ended up closing
- Stock Pools and Watered Stock
- Wealthy buy stock for little cost
- Cause the price of stock to rise
- Sell stock at very high prices
- Didn't reflect business
- Government had no rules over the stock market
- Unrealistic view of the market
- No one believed the stock would ever fall
- "Over Exuberance and False Expectations"
- Weak banking system
- Us had over 30,000
- Prone to going bankrupt
- High bank failure rate
- People lost money
- Over speculation
- Federal Reserve increased interest rates (the bankers bank)
Great Depression
- Stock Market Crash
- Bank failures
- Banks stopped giving out loans
- Overproduction and under-consumption
- Raised US tariff's-tax on imported goods
2. What impact did the stock market crash and Great Depression have on the lives of people in the United States?
Roaring 20's
- Wealth and peace
- Cities
- Agricultrue
- Stock Exchange
The Crash
- Panic
- Withdrawing funds
- Tuesday, October 29, 1929
- 14 billion dollars
- 30 billion dollars (lost in 1 week)
Impacts
- Steel
- Construction
- Car sales
- High Debts- Easy Credit
- Unemployment
- Lost everything
- Business'
- Jobs
- Vicious cycle- people not have money, so businesses closing and laying off people
3. What did the United States government do to help alleviate the problems the Great Depression brought to our country?
President Hoover
Roosevelt-New Deal(Goals/1st and 2nd)
How did the New Deal impact the following: unemployed, young people, factory workers/labor unions, farmers, elderly/poor, homeowners, artists/musicians, women/African-American/Native Americans, banks, stock market, energy
Factory Workers
- Dirty, crowded, and dangerous
- Factory jobs were low paying
- National Industrial Recovery Act- The act was designed to allow businesses to set their own standards of production, prices, and wages
- Guaranteed collective bargaining rights to the worker or workers
- Wagner Act- Gave people the right to engage in collective bargaining for better terms and condition at work
- Fair Labor Standards Act- The FLSA introduced a max of 44 hour seven-day workweek
- Established a national minimum hourly wage at 35 cents
- Banned child labor
- NIRA code- the businesses that follow it will treat employees better (ex. minimum wage)
Poor
- Unites States Housing Authority (USHA)- help people get back on their feet
Homeowners
- Federal Project No. 1 (federal one) under the WPA
- FHA- Federal Housing Admissions, helped people get loans and set up certain housing standards
Musicians
- The Federal Music Project- (under WPA, was part of the New Deal) helped..
Artist
- The Federal Art Project- this project helped artist with making art. People from all over helped make and sell over 200,000 products
Women
African American's
Banks and The Stock Market
- Bank Runs
- No faith in banks
- Over 25 thousand in 1929
- Investing money in stock market
- First New deal
- Bank holiday- closed them down temporarily
- Federal Reserve Act- the bank's bank (to prevent bank runs)
- Federal Deposit Insurance Corporation- Made it so banks couldn't invest your money
Stock Market
- No buying, all selling
- Prices plummeted
- 12.9 million on black thursday
- 16.4 million on black tuesday
- Stock prices down by 20%
- Securities Act of 1933- companies register stock of sales, regular financial disclosures
- Public Utility Holding Company Act
- Securities Exchange Company-
4. What long lasting impact did the Great Depression have on Shelby County, Iowa, the US and world?
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