On this day we took a quiz over the Stock Market Crash and Great Depression. Then we continued blog discussion. Here are the notes I took:--Causes of the Stock Market Crash-Buying on margin (buying stocks on credit). When no one buys, it plummets. Originally based on something that wasn't there. Permanent prosperity was before. Stock prices became overvalued, so eventually people start to sell due to panic. Overspeculation. Overproudction of goods. Too much borrowing from banks. Uneven distribution of wealth. Federal Reserve increased interest rates. Lack of government regulation.--Causes of the Great Depression-Overproudction of goods. The Vicious cycle-companies lose money, so they lay people off, so people don't have money to spend. It repeats. Underconsumption. Dust Bowl ruined farming for the 30's. Tariffs became higher, so less oversea trading. Obviously, the stock market crash. Taxes benefiting the rich-rich got richer, poor got poorer. Droughts in the great plains.1. 1928 Election-Herbert Hoover vs. Al Smith. Hoover was the Republican canidate and Smith was the Democrate canidate. Hoover won the election by a landslide victory, due to the fact that he was Republican. Became the last Republican president until Eisenhower. Smith was against prohibition. Smith was a Catholic.2. Stock Market in the 1920's-Stock prices rose, especially the Dow Jones, which is a stock measurement tool, or an indicator. Dow Jones is the 30 biggest companies of the 1920's. Examples include Disney, Verizon and other like that today. Reached 381, a very high number, in 1929. A stock is a share of a company. Investors couldn't complete their loans, money was permanently lost.3. Story of the stock market crash-not the causes-In 1929, March there was a mini-crash, so people started selling, nervousness. Charley Mitchell saved the day due to continuing with loans. Then Black Thursday, October 24th with the crash. Selling continued, but the big hit was Black Tuesday, the 29th of October. Charley Mitchell tried again, but ultimately failed. He lost everything.4. Banks and business' collapse-9-11,000 banks closed during the Great Depression. People would make bank loans, but when people wanted thier money, almost always in a huge crowd, they would run out of money. Businesses overproduced because of underconsumption. Business cuts and lay-offs, 90,000 businesses went backrupt over the Great Depression. 25% unemployment was the highest it got.5. Effect stock market crash had on other countries-The Depression spread to foreign countries. Banks closed and businesses went bankrupt as well. Dictatorships would form as well in Japan and Germany, as well as Spain. Overall negative impact. Helped lead to WWII.6. Depression in the cities-It sucked. Garbage was put together to form homes/shantytowns, aka Hoovervilles. Cars could be used as well. Racism was popular in the cities, but was intensified because of blacks "stealing jobs" when whites thought they should get them. Latinos were deported for "stealing jobs". More left outright because of the hatred toward them. Breadlines where people could get food and cltothing for virtually free. Local government and churches took charge of these. Lines were long. Women didn't want to join the breadline. They were "too proud". Men had jobs to bring food home. Soup kitchens were popular as well. Hoboes hopped the freight trains, as well as teenagers, a dangerous act that was done to look for jobs. Selling apples for a penny or two from venders. Different from today.
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