Blog Discussion
Ch. 14 Test Topics:
-- Causes of the Stock Market Crash (expand upon)
Buying stocks on margin-get it now pay later.
Overspeculation during the 1920's. Which is buying and selling stocks.
Overproduction of goods.
Uneven distribution of wealth.
Too much borrowing from banks.
Stock prices were grossly inflated, didn't have real value.
Federal Reserve increased interest reates.
Lack of government regulation.
Vicious Cycle of the Great Depression-Companies lose $ ->Companies lay off workers -> More people with less $ to spend.
--Effects of Stock Market Crash ( name bullets)
Investors and businesses lose millions $$$.
Thousands of banks fail-savings are wiped out.
Businesses cut production-lay off workers.
Unemployment rises-people quit spending money.
Great Depression sets in.
Depresssion spreads to Europe and other parts of the world.
--Causes of the Great Depression (expand upon)
Overproduction of goods.
Underconsumption of goods by consumers.
Agricultural slump due to overproduction.
High protective tarriff policies of the 1920's.
Taxes benefiting the rich-rich got richer, and poor got poorer.
Stock market crash.
--Effects of the Great Depression (name bullets)
New Deal programs start-makes the US government much larger.
Deficit spending starts.
The New Deal creats many organizations that are still around today-social security.
Fascist, military and communist dictators come to power throughout the world.
--The Vicious Cycle of the Great Depression
Companies lose $$$ so they lay off people.
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
Herbert Hoover (Republican)-Dominated and became president. Republicans had been presidents during the 20's so people didn't want to change. Wanted prohibition.
Al Smith (Democrat)-Reasons why he lost: Wanted to repeal prohibition. He was Catholic.
2. Stock Market in the 1920's
Dow Jones International Agency (DJIA)-top 30 owned companies and shows if its gone up or down.
The stock prices were inflated.
3. Story of the stock market crash-not the causes
Our economy was based on credit. Everyone was buying stock on credit so a lot of people could buy it so the stocks were inflated.
March 1929: Stocks dropped dramaticly. Charlie Mitchell gave low interest rates on loans. He bought stocks and the market rebounds.
4. Banks and business' collapse
About 9,000 banks failed during the 1930's out of about 25,000 banks. Unemployment rose from 3% to 25%. 90,000 businesses collapsed during the Great Drepression.
5. Effect stock market crash had on other countries
1st-England: already having unemployment rates then stopped backing up money with gold.
2nd-South Africa: no gold from England
3rd-Germany: couldn't get loans from the US because they owed a lot of money from WWl.
6. Depression in the cities
7. Depression in the rural areas
8. Dust Bowl
9. Men in the Streets
10. Women struggle to survive
11. Children suffer hardships
12. Social and psychological effects
13. Hoover's background
14. Hoover's philosophy/Cautious steps
15. Boulder Dam(480)
16. Democrats win 1930 Congressional elections
17. Hoover takes action
18. Bonus Army
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