Ch. 14 Test Topics:
-- Causes of the Stock Market Crash
-Over speculation during the 1920's-
-- Causes of the Stock Market Crash
-Over speculation during the 1920's-
-speculation- is our people playing the stock market buying and selling to make alot of money
-especulator-were in it for the long term.
-Overproduction of goods-companies were making tons of products, but weren't really selling anything, so no purchasin, lay workers of, go out of business.
-Buying on margin- buying stocks on credit- borrow money, and make more like borrow 100 and make 1000, and then pay the money tha your borrowed. But stock were not worth anything.
-Uneven distribution of wealth-the rich got richer, and the middle class and poor went into debt, so they stopped buying things to pay for their debt, or they already had everything they needed.
-Too much borrowing money from banks-banks made it way to easy to borrow with very little intrest rates.
-Stocks prices were grossly in flated, did not have real value-due to ever speculation.
-Federeal Reserve increase interest rates- control intrest and control money in circulation. Intrest how banks make money, so they charge you intrest. The FDR raises intrest rates- so people are going to stop buying stocks, and production. because everything was based on borrowed money. people stopped borrowing.
-Lack of goverment regulation-the goverment in the 1920's had no rules on it. Picking a stock that wasn't very good, and then making it look really good, and then selling it to the common people. Selling all the stocks for more money. A lot of people bought on margin- the causes of the stock prices was based on borrowed monoey
-Vicious cylcle-companies loose$$, companies lay of workers, more people with less $$ to spend-cylce starts over again
-Uneven distribution of wealth-the rich got richer, and the middle class and poor went into debt, so they stopped buying things to pay for their debt, or they already had everything they needed.
-Too much borrowing money from banks-banks made it way to easy to borrow with very little intrest rates.
-Stocks prices were grossly in flated, did not have real value-due to ever speculation.
-Federeal Reserve increase interest rates- control intrest and control money in circulation. Intrest how banks make money, so they charge you intrest. The FDR raises intrest rates- so people are going to stop buying stocks, and production. because everything was based on borrowed money. people stopped borrowing.
-Lack of goverment regulation-the goverment in the 1920's had no rules on it. Picking a stock that wasn't very good, and then making it look really good, and then selling it to the common people. Selling all the stocks for more money. A lot of people bought on margin- the causes of the stock prices was based on borrowed monoey
-Vicious cylcle-companies loose$$, companies lay of workers, more people with less $$ to spend-cylce starts over again
--- The stock market was a game, and then the goverment put a bunch of regulations on the stock market.
Effect of the stock market crash-Great dreppresion set in, banks closed. people lost a lot of their money, people lost their jobs and could no buying anything. Depression spread spread to Europe and other parts of the world
EFFECT OF THE STOCK MARKET CRASH- invester and bussinesses lose millions, thosands of banks fail saving are wiped out, busineeses cut production andlya people of, unemployment, people stop buying,
Depression comes in. Affected the whole world.
--Causes of the Great Depression
- over reproduction of goods
-underconsuption of goods by consummers
-Agriculture slump due the the over reproduction
-hihg protective tarrif policies o fthe 1920's
-Taxes benefiting the rich-rich got richer, the poor got poorer-taxes benefit that rich becasue the tax burden was on the middle-lower class. so take half oway from the rich person- they are still rich, but for a poor person they barely have any money, that effects the buying and the vicious cycle starts.
- Tarrif- is the tax and imported goods- a hight tarrif gets people to buy american goods- keep foriegn competiion out so that people can buy american goods. The republicans failed to recongnize the importance of foriegn trade, So high tarrifs keeps out contries out, good inside country but bad in others. So contries raised taxes as well, so u.s bussinesses coult not trade with foriegn countries.
-Stock market crash
Effects of the great Depresion
-New deal programs start makes the us goverment much larger
- Deficit spending starts-spending more then you take in 1930's
- The new deal cretes many organiztions that are still around today-social security- is account number
-Facist, millitary and communist dictarors come to power throughout the world-The great depresion could have been a big affect on WW2 comming about.
- so the goverment has a say in everything
Vicious cycle
-companies lose money so tthe lay of pople
-unemplyment rate goe s up and less people buy goods as income has drpped
companies profits fall so they have tolay more popel off or close
-cylce repeas its self
1. 1928 Election(466)-hoover, frank lader, charles curtis. Hoover won by a large majority. Hoover would not win in this time beacaue he was a soft person. becasue he was a go with the flow peson, like god wil help me. Hoover was republican-they were in power in the 20's people thhought it would keep going, Hoover was againts prohibition, smith was catholic, only president to be other the JFK. Country was based on anit catholic that why we left europe.
2. Stock Market in the 1920's(466-468)-men go into stocks to make money, you make money by divedends. You can buy and sell stocks. If you buy a stock at a low price you could always sell it for money. Dow jones- shows how much the market has gone or up or down. It is an economic indicator. How our stocks an economy is doing.
3. Story of the stock market crash-not the causes(467-469)-the roaring 20's since every one was buying on credit, and all the stock were based on credit. Every one wanted to be a part of it so people started buying a margin. March 19, 1929 the day were the stocks droped sharply. Bank owner was loaning loans with low intrest rates, and he invested most of his money in stocks. He saved the day! the stocks starting going up and up, Charlie Mitchell tries it againg on oct 24 when the stocks going down sharply, by doing the some thing. Monday stocks fall signaficalntly. On tuesday the reall mess happens.
1. 1928 Election(466)-hoover, frank lader, charles curtis. Hoover won by a large majority. Hoover would not win in this time beacaue he was a soft person. becasue he was a go with the flow peson, like god wil help me. Hoover was republican-they were in power in the 20's people thhought it would keep going, Hoover was againts prohibition, smith was catholic, only president to be other the JFK. Country was based on anit catholic that why we left europe.
2. Stock Market in the 1920's(466-468)-men go into stocks to make money, you make money by divedends. You can buy and sell stocks. If you buy a stock at a low price you could always sell it for money. Dow jones- shows how much the market has gone or up or down. It is an economic indicator. How our stocks an economy is doing.
3. Story of the stock market crash-not the causes(467-469)-the roaring 20's since every one was buying on credit, and all the stock were based on credit. Every one wanted to be a part of it so people started buying a margin. March 19, 1929 the day were the stocks droped sharply. Bank owner was loaning loans with low intrest rates, and he invested most of his money in stocks. He saved the day! the stocks starting going up and up, Charlie Mitchell tries it againg on oct 24 when the stocks going down sharply, by doing the some thing. Monday stocks fall signaficalntly. On tuesday the reall mess happens.
4. Banks and business' collapse(469)- out of the 25,000 banks in the u.s 11,000 failed. Uneploy ment rose in 3-25% ...90,000 businesses failed around the country
5. Effect stock market crash had on other countries(469-471)- First country was englad because it was the country we traded with the most. Then they started backing up their money with gold, and that affacted africa because it was the main provider, Then Germany super hard because of WW1, and they stopped getting loans the economy went supper down. In resul dictators rose to power.
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)
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