-- Causes of the Stock Market Crash-Stock prices were over valued-weren't worth their actual value!-People started selling their stocks because of panic.-People quit buying things, so company values went down and the stock prices started going up.-People started buying on margin. (Based on borrowed money)-Too much borrowing of that money.-Overproduction of goods-leads to people not making money-unemployment.-Uneven distrubtion of wealth.-Lack of government regulation.-Federal Reservere increased interest rates.-Overspeculation during the 1920s.-Effects of the Stock Market Crash--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.-Depression spreads to Europe and other parts of the world.--Causes of the Great Depression-Overproduction of goods.-Underconsumption of goods by consumers. People were satisfied with what they had.-Agricultural slump due to overproduction.-High protective tariff policies of the 1920's.-Taxes benefiting the rich-rich got richer, poor got poorer.-Stock market crash.-Effects of the Great Depression--New Deal programs start-makes the US gov't much larger.-Deficit spending starts.-The New Deal creates 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 money 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 people more people off or close.-Cycle repeats itself.1. 1928 Election(466)- My topic. See assigned blog.2. Stock Market in the 1920's(466-468)-The Dow Jones Industrial Average is one of the several stock market indicators created by Charles Dow.-It was a dangerous place because the government had no regulations.3. Story of the stock market crash-not the causes(467-469)-Charles Mitchel caused the stock market to not crash in March 1929.-Thursday on October 24th, the stocks dropped 11% causing panic to Americans.-Friday things rebounded.-On Black Tuesday, the crash dropped 12%. The day before it had dropped 11%.-Bank holders kept trying to pump money into the stocks to keep them from continuing to crash.4. Banks and business' collapse(469)-People would run to their banks and try to take out money that the bank did not have.-9,000 to 11,000 banks closed down throught America.-Businesses' failed because people stopped spending their money and businesses' lost all their profits.-90,000 businesses' crashed.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 background14. 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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