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 regulation
Efects:
-Investors and businesses lose millions $$$
-Thousands of banks fail-savings are wiped out
-businesses cut production-lay off workers-unemployment rises-people quit spending money
-Great Depression sets in
-Depression spreads to Europe and other parts of the world
--Causes of the Great Depression
-Overproduction of goods
-Underconsumption of goods by consumers-people weren't buying
-Agricultural slump due to overproduction-too many crops-prices went up
-High protective tariff policies of the 1920's
-Taxes benefiting the rich-rich got richer,poor got poorer
-Stock marker crash
Effects:
-New Deal programs start-make the US gov't much larger
-Deflict spendign starts
-The New Deal creates many organizations that are still around today-social security
-Facist, military and communist dictators come to power throughout the world
Vicious Cycle of Depression
-Companies lose $$ 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 catholicism
2. Stock Market in the 1920's(466-468)
-Stock value went up
-No regulations in the stock market
3. 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 market
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 savings
5. 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 dictators
6. 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 casinos
7. 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 up
8. 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 California
9. 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 depression
10. 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 out
12. Social and psychological effects(477)
-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 regulation
Efects:
-Investors and businesses lose millions $$$
-Thousands of banks fail-savings are wiped out
-businesses cut production-lay off workers-unemployment rises-people quit spending money
-Great Depression sets in
-Depression spreads to Europe and other parts of the world
--Causes of the Great Depression
-Overproduction of goods
-Underconsumption of goods by consumers-people weren't buying
-Agricultural slump due to overproduction-too many crops-prices went up
-High protective tariff policies of the 1920's
-Taxes benefiting the rich-rich got richer,poor got poorer
-Stock marker crash
Effects:
-New Deal programs start-make the US gov't much larger
-Deflict spendign starts
-The New Deal creates many organizations that are still around today-social security
-Facist, military and communist dictators come to power throughout the world
Vicious Cycle of Depression
-Companies lose $$ 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 catholicism
2. Stock Market in the 1920's(466-468)
-Stock value went up
-No regulations in the stock market
3. 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 market
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 savings
5. 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 dictators
6. 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 casinos
7. 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 up
8. 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 California
9. 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 depression
10. 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 out
12. Social and psychological effects(477)
-crime rate went up
-people became clincally depressed
-People who were alive were thriftier and appreciated their jobs more
-people became really hard workers
-suicide rate went up
13. Hoover's background
13. Hoover's background
-born in westbranch Iowa
-moved to Oregon with his uncle b/c his parents died
-He was in London when WWI broke out
-He supported the St. Lawrence sea way
-Became chairman for the boys club of America
-Die October 20th 1964
14. Hoover's philosophy/Cautious steps(479)
14. Hoover's philosophy/Cautious steps(479)
-Philosphy-rugged individulaism-have people figure out problems themselves
-People went on strike
-He was passive-smalle government
-Laissez Faire-means let alone-Government stays out of business
-Trickle down theory-Tax breaks upper class->middle class (better wages)->Lower Class
-Fiscally Responsible
15. Boulder Dam(480)
15. Boulder Dam(480)
-Built in Colorado river
-Built between Colorado and Arizona
-gave a lot of men jobs
-Many workers died during construction
-Needed hydroelectric power
-Millions come each year to see it
16. Democrats win 1930 Congressional elections(480)
16. Democrats win 1930 Congressional elections(480)
-People blamed hoover for bad economy
-Many democrats won election
17. Hoover takes action(481)
-Inherited bad economy
-Tried to help farmers-buiding up surplus
-Nation Credit Coorporation-large banks would lend money to smaller banks in a crisis
-Federal Home Loan Bank Act-Help lower mortgage rates so people didn't lose homes and farms
-Reconstruction Finance Coorporation-Loaned out billions to big business,banks,insurance companies to create jobs for people.
18. Bonus Army(482-483)
18. Bonus Army(482-483)
-10,000 veterans went to washington to get payed b/c they were promised a bonus check
-Hoover wouldn't give it to them
-They fought against it and marched around Washington D.C
-They eventually got it but not the day the wanted it
-Roosevelt set up tents and water for the protesters
-Hoover ordered the militatry in to use tear gas to disperse the crowd
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