-- Causes of the Stock Market Crash
- stock prices were over valued (priced)
- "buy now, pay later" a lot of people sold on credit
- buying on margin, "stock on credit"
- farmers did not do well in the 1920's.
- overproduction of goods
- stock prices were grossly inflated, did not have real value
- Federal Reserve increased interest rates
- lack of government regulation
- overspeculation during the 1920's
- too much borrowing from the banks
Effects
- investors and businesses lose millions of dollars
- thousands of banks failed
- 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 gooods
- it lead to companys not making money
- underconsumption of goods by consumers
- agricultral slump due to overproduction
- they planted to much crops and supply/demand stayed the same
- high protective tariffs policies of the 1920's
- taxes benefiting the rich, rich got richer, poor got poorer
- stock market crash
- BIG REASON FOR GREAT DEPRESSION
EFFECTS
- New Deal programs start-makes the US government much larger
- Deficit spending starts
- The New Deal creates many organizations that are still around today- social sercurity
- Fascit,, military and communist dicators come to power throughtout the world
The Vicious Cycle of the Great Depression
- Companies lose $$ so 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 (R) Al Smith (D)
- Herbert Hoover won the election
- Al Smith was a catholic and was against prohibition
2. Stock Market in the 1920's(466-468)
- Dow Jones Industrial Average is one of several stock market indicators created by Charles Dow
- Examples: Wal-mart, verizon, Mcdonalds
- it was a dangerous place because they were no restrictions
3. Story of the stock market crash-not the causes(467-469)
- Charlie Mitchell offered lots of loans and he invested millions of dollars to the stock market and he saved the stock market
- Stock Markey crashed 11% right away, US steel Richarnd Whitney tried to bring faith back into the stop market and on Black Friday things got better and was a rebounded. Over the weekend the press made everything public and everyone wanted to withdrawl their money. in two days the stock market crashed 1/4. (25%)
- There were lots of signs that the crash market was going to crash
4. Banks and business' collapse(469)
- people got worried when the stock market went and people would run to the bank and try to get their money but it wasnt there.
- 11,000 banks failed during the great depression
- business failed because people wanted to save their money and no one had the money to buy goods
- 90,000 business clapsed so there was a lot of unemployment
5. Effect stock market crash had on other countries(469-471)
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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