started off with dancing to the macerena:)
1. Causes of the Stock Market Crash
- Buying on credit, buying in margin
- Federal reserve raised intrest rates, so people stopped buying items and stocks, then started selling stocks
- spectulators buy stock then a year later they would sell....stock watering- over value of stock prices
- overproduction of goods
- uneven distribution of wealth- rich got richer and the poor got poorer, people that wernt rich had massive debt so they quit buying things
- too much borrowing from banks poeple were in debts
- lack of government regulation- pooling-people would get together and buy a stock and they would get millions of dollars for that stock
1. Investors and businesses lose millions of money
2. Causes of the Great Depression
- Banks failed
- Smoot-Hawley Tariff-
- Unempolyment rate
- stock market crash
- overprodutcion of goods
- Underconsumption of goods by consumers
- Agricultural slump due to overproduction
- High protective tariff policies of the 1920s
- Taxes benefiting the rich- rich got richer and poor got poorer
Vicious Cycle of the Great Depression
-companies lose money so they lay people off
-unemployment rate goes up and less peopole buy good as income has dropped
-companies porfits fall so they have to lay more people off or close
-cycle repeats itself
Plus one of these topics:
1. 1928 Election(466)
Republic- Herbert Hoover (he won) his national reputation got him his landslide victory. Was head of the food administration of WWI. Helped relief efforts in Belgium after they were attacked by Germany in WWI. But when he was president it seemed like he didn't care about the people. Was born in Iowa. He was trained as an engineer. and he won over Democratic states.
Democratic- Al Smith. He got vice president. was governor of New York for 3 years before election. Had more political experience. He was against prohibition(he wanted the ban of alcohol) (that hurt him) He was a democrat so that hurt him because we had Republican presidents for the last 2 terms and it was the roaring 20's and they thought Republican's were God-like. He was Catholic (that hurt him too) (the people were afraid that the Pope would run the country, not the president).
2. Stock Market in the 1920's(466-468)
a stock is an investment in a company(buy a part of the company. Make money off of the company)
stock market- buy and sell stocks
Difference between stock market now and during the 20's- more rules and regulations today
People were buying stocks for cheap and then selling them at high prices, which led to inflation.
People wanted more stock to make more money. The price of stocks were increasing. The Dow Jones(A stock that's invested in the 30 largest companies) If the Dow Jones is doing good, then the companies are doing good, if the Dow Jones is doing bad, most companies are doing bad. Indicator how the stock market is doing
3. Story of the stock market crash-not the causes(467-469)
in march 1929, there was a drop in the stock market. Thursday drop in stock market. Friday it rebounds. (around oct.25.) monday was a 30% drop. Black Tuesday was 2nd worst dropping in stocks.
4. Banks and business' collapse(469)
People put their money into banks without permission to get money for stocks and then the banks started to fail. People tried to get their money out as fast as they could. They panicked. Banks lost money because they gave out too many loans so they had to shut down and people lost their money. Businesses didn't get money because people weren't buying things so people got laid off, they tried to save their money so they didn't buy goods so businesses lost more money.. Vicious cycle. In 1929, the output of the goods from businesses dropped 54%. 90,000 businesses went bankrupt. Unemployment rate went to 23-25%.
5. Effect stock market crash had on other countries(469-471)
unemployment rates raise
president said to raise tariffs and so other countries rose tariffs
Caused the World Trade Center to cut in half. Didn't buy goods from other countries.
Europe brought about dictators and caused Hitler to rise.
Other countries went into a depression
6. Depression in the cities(472-473)
People started to lose their jobs so they started to lose their homes too and lived in the streets. THey didn't have enough money for food so restaurants started selling really cheap food or free food. Soup kitchens were made. Farmers were destroying food and people in the cities didn't have food. Hoover blankets were newspaper used as blankets. (Hoovervilles cuz they were blaming their problem on Hoover.)
Breadlines were for people that could go stand in lines for bread. Women didn't stand in the breadlines because they were too ashamed to admit that they needed help. It was the man's responsibility to bring home the bread. The federal gov't did not finance this because they didn't think they should just hand out money to people.
blacks and latinos got paid less cuz of race. Latinos(ppl from central america) were sent back to where they came from even if they were born here.
7. Depression in the rural areas(473)
About 400,00 farms were lost in 3 years. They had the advantage of having food. They made too much food so they were losing money. They started destroying farms, killing hogs, spilling milk that way overproduction would go down so people would start buying food again. they weren't being paid enough. but in the cities people were hungry.
8. Dust Bowl(474)
it was also called the Dirty Thirties. People would breathe in dirt. They would put wet sheets over their windows to stop the dust/dirt from coming in. Millions of acres of farmland were unusable so they had to move to different states. Called okies. There were 38 dust storms or something like that. It happened because of drought, not many trees to stop the erosion from taking place, high winds, and during the WWI years, the farmers were told to plow up the land.. so the top soil was blown around. Was in the great plains.
9. Men in the Streets(475)
men that would go up and down the streets to see if they could find a job, but there was none. They would hop from train to train. Hobos were originated because they were men who had to leave their families, and they set up their own languages by saying that the places were safe or not. Kinda had symbols. Were about 300,000 hobos. A lot of people disappeared, especially the teenage hobos.
10. Women struggle to survive(475-476)
Would stay at home, and can foods. Some women had jobs, but they were payed a lot less than men. Women wouldn't stand in bread lines because they were too ashamed. They struggled a lot during the depression. A lot died of starvation.
11. Children suffer hardships(476)
A lot of them left their homes and turned into hobos. Hopped trains to find jobs, but couldn't find jobs. They were homeless. Those who did find jobs didn't get paid a lot, worse than women's pay. They would send the money and whatever they had to their families. A lot of schools shut down.
12. Social and psychological effects(477)
The suicide rate rose a lot. Unemployment rate went up so the parents didn't have jobs, so the kids had to take responsibility and find a job. A lot of people were admitted to mental hospitals. It hit people hard. Divorce rate went up. Dreams went out the door especially for kids because they wouldn't be able to go after their dcreams because their parents didn't have money for them to go to college.
13. Hoover's background - MINE!
Born in Westbranch, Iowa. His house is a museum. He went to college to be an engineer. Was a quaker. During WWI he helped the relief efforts to Belgium. Helped them get food. Was the head of the Food Administration of the United States. Said food will win the war. Was Secretary of Commerce under Calvin Coolidge.. Was Republican.
14. Hoover's philosophy/Cautious steps(479)
Didn't want to give money to people, but that's what he ended up doing. Thought a trickle down theory would help.
He thought gov't should stay out of business(laissez faire)
Thought people should fend for themselves(rugged individualism)
It made him look like he didn't care about people, but he did. The biggest thing that Hoover did do was the Boulder Damn project
15. Boulder Dam(480)
They hired over thousands of workers. Lost of a hundred men. 725 ft tall. has enough concrete to spread from New York to LA. Now it's called the Hoover Dam. It's in the Colorado River. There's a controversy over who it should be named after. Either Hoover or Roosevelt. Helped bring about Las Vegas and drinking water.
16. Democrats win 1930 Congressional elections(480)
Hoover and the Republicans started getting turned against because of the Depression. THey lost control of the house completely.
17. Hoover takes action(481)
He'd give seed and fertilizer to farmers.
The Federal Farm Board would raise crops by buying surpluses. They gov't would buy these extra crops until the prices rose, and then they'd sell those crops, but then the prices would go down again.
National Credit Corporation-loaned money to smaller banks. He came up with it.
The Federal Home Loan Bank Act lowered mortgage rates.Made it easier for people to refinance so farmers could keep their homes and farms.
The Reconstruction Finance Corporation- an example of trickle down theory. 2 billion dollars was loaned out to banks, big businesses, state local gov'ts. Help create new jobs for people.
He did a lot to try to help people but it just wasn't enough.
18. Bonus Army(482-483)
WWI vets were supposed to get a check sooner than 1945
Hoover provided tents for them
Congress says no, they get it 1945.
they cleared people from protesting with gas that hurt the babies
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