Friday, Jan 13th

[6thCari]

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 $$$-Thousands of banks fail-savings are wiped out-businesses cut production-lay off workers-unemployment rises-people quit spending money-Great Depression sets in-Depression spreads to Europe and other parts of the world--Causes of the Great Depression-Overproduction of goods-Underconsumption of goods by consumers-people weren't buying-Agricultural slump due to overproduction-too many crops-prices went up-High protective tariff policies of the 1920's-Taxes benefiting the rich-rich got richer,poor got poorer-Stock marker crashEffects:-New Deal programs start-make the US gov't much larger
-Deflict spendign starts
-The New Deal creates many organizations that are still around today-social security
-Facist, military and communist dictators come to power throughout the world
Vicious Cycle of Depression
-Companies lose $$ 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 itself
1. 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%4. 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)6. Depression in the cities(472-473)7. Depression in the rural areas(473)8. Dust Bowl(474)9. Men in the Streets(475)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)