Ch. 14 Test Topics:
-- Causes of the Stock Market Crash
- Margin Buying
- Buying/selling of stocks
- Stocks went up but banks went down
-- Effects:
- Investors and businesses loose money
- Many banks fail-savings are wiped out
- Buisnesess cut production, more people were laid off
- Unempolyment rises- people quit spending as much money
- Great depression sets in- spreads to other parts of the world
--Causes of the Great Depression:
- Unemployment
- Stock market Crash
- Overproduction of goods
- Underconsumptions of goods
-- Effects:
- New Deal programs
Vicious Cycle of The Great Depression:
- Companies loose money so they lay people off
- Unemployment rates go up and less people buy goods because income has dropped
- Companies profits drop so they have to lay more people off or close up
- Cycle repeats itself
1. 1928 Election(466)
Herbert Hoover (R) & Al Smith (D) were canidates. Calvin Cooledge was presidet at the time. Hoover won. Smith was vice president. Hoover actually went out and talked to democratic states. Smith was a 3/4 term govenor of NY. Smith had more political experience. Smith was against probition and he was a democratic and he was catholic (this hurt him because people thought the pope would run the country).
Why did Hoover win the election? - Reputation, Probition, Republicain, Not against probition
2. Stock Market in the 1920's(466-468)
Investing in a company (goods) owning a part of the company. Buying and selling stocks. People wanted good stocks for more money so stock prices were increasing. If the Dow Jones is doing well/bad then most other companies (with exceptions) are doing well/bad too.
3. Story of the stock market crash-not the causes(467-469)
March 1929 there was a day or two of stocks dropping. CHarlie Mitchel head of bank offerd to allow loans for stocks and the stocks set records after that. Fall of 29' we see drops/rebounds.
4. Banks and business' collapse(469)
People put money into banks and without permisson banks put money into stocks. Stocks failed and when people tried to get money out of the banks it wasnt there. People stopped buying goods becuase the money was gone. Buisness didnt get money because people wernt buying so workers were laid off. Unemployment Rate : 25-30%
5. Effect stock market crash had on other countries(469-471)
Tarrif raised because the Presiedent said we needed it.
6. Depression in the cities(472-473)
People statred to loose there jobs so food was being sold cheap for unemployed people. Africans paid less (racism thing) Latinos were forced to leave because the americans felt they didnt need jobs because we needed jobs (racism thing)
7. Depression in the rural areas(473)
Grow and eat there own food (farmers) lots of farmers lost there farms. ABout 400,000 farsm were lost in 3 years. Farmers grew too much food and were loosing money because they had to throw out lots of food (destroying crops) but in the city the people were starving and the dust bowl had an effect on this.
8. Dust Bowl(474)
Oakies, children wearing sand masks to & from school. Women hung up wet sheets to stop sand from entering there homes. Millions of acres of farmlands were useless so farmers and families moved mostly to Cali. Cause from droughts, crop condition, high winds.
9. Men in the Streets(475)
Hobos had there own language and communication system. Like if the water somewhere was good or bad, food here, good place to sleep, ect.
10. Women struggle to survive(475-476)
Women mostly took care of the home. If women had jobs they were paid way less than the men. Women were ashamed to stand in bread lines, so most of them died.
11. Children suffer hardships(476)
Wildboys- left to find jobs. Most of them did not find jobs and became homeless. If they did get a job they were paid terrible and sent there money to there homes. Schools shut down from lack of students.
12. Social and psychological effects(477)
Suicide rate went up. Mostly from lack of money. Children had to take up responsibility from parents. Tought times hit hard (depressed, mental disorders, suicide, divorce rate).
13. Hoover's background
He was president at the beginning of the depression. People did not like what he was diung but he did a lot more than otheres would have. He thougth there should have been less government involved. He was born in Iowa. Went to collage to be an engineer. He helped getting food and head of the food something in the US for WW1.
14. Hoover's philosophy/Cautious steps(479)
Believed in the trickle down theory,laissez faire, & rugged individualism
15. Boulder Dam(480)
While builiding it they lost over 100 men, it was 750 ft tall. Now called hoover dam and it dams the colorado river.
16. Democrats win 1930 Congressional elections(480)
republicns were blamed for what happened to our country & republicans stayed one vote ahead in congress.
17. Hoover takes action(481)
He tried to start the econmy by building the boulder dam. He gave out seeds to farmers in need, but he didnt hand out bread. raised crop prices by buying surplus. National credit sorp. loaned mone to small banks, federal home loan bank act aloowed people to refinance their homes.
18. Bonus Army(482-483
The vets of WWI wanted their bonus checks in their time of need, and they protested. Congress refused the bill & most troops left after they heard, except for about 2,000 who protested. miliary pushed them out with tear gas. This made Hoover even more hated.
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