1. What were the causes of the stock market crash and Great Depression?
Stock Market;
1. Buying on credit- No real limits but you had to pay it back. This caused debt, so people would not buying things then. This made stock value go down.
2. Overvalued Stocks/ Over Speculation-
Stocks were being sold for much more than they were actually worth. Investors expected the value of stocks to continue to increase, never considering that eventually the upward trend would cease. Speculators were the ones who quickly bought and sold stock to make money.
3. Buying on Margin -
Buying on margin allowed more middle class people to invest large amounts of money into the stock market. They would take out "loans" from investors with the intentions of paying them back with interest when they started to profit from their investments. The fact that so much of the stock market was supported by borrowed money made it very unstable. Another form of buying on margin allowed for investors to pay just 10% of the value of the socks they purchased at the time of purchase, and pay installments for the other 90%. The stock market was not likely to continue to be stable when so much was money being borrowed from it. When the stock market was only the rich people, it was more stable than with all the middle class people.
4. Over Production - Businesses produced to much foods or products. and with people not being able to buy anything because they were losing their money, the businesses did not make any money, so they over over produced.
5. No Government Regulation -
The government had not set good enough regulations for banks. No requirement for minimum capitol to start a bank had been made. No limit to how much banks could lend out had been set. When the market crashed, banks that had a lot invested into stocks were wiped out.
Great Depression;
Stock market crash; A lot of people invested so when it crashed they had no money.
bank failures; people lost a lot of money. Their money was lost
drought conditions
American economic policy with Europe; government created it to protect company, but it had a high tax imports. No more world trade.
2. What impact did the S.M.C and Great Depression have on the lives of people in the U.S?Children; boxcar children were common, write to people like the presidents to get stuff like clothes and shoes. ran from home, girls dress like kids.
Woman; stayed at home, cleaned, cooked, thought they should do more home work.
Men; made the money, bought the food, they felt like failures. they lost their jobs, so no food, no house. Looked for more jobs, left families, 1.5 million woman were left be their families.
Families- marriage was off or ended, lots of divorce, birth rates went down, family income went down- 34% lots of stressed,
Farmers; Corn prices went way down, many burnt the corn for heat. living off the land, flower sack clothes, bartering.
Wealthy people- not affected. 40% was not affected. some wealthy would try to help modern people. Some flaunted their wealth.
Living conditions- Hoovervilles- towns made from any kind of material. homeless lived wherever they would.
Jobs- lots were looking for jobs, white men usually got the jobs. Woman were stealing jobs for men, then they would fire the woman and give the jobs to the men. If you didn't have a job you'd become homeless.
Dust bowl; the dought and over plowing, 8 years long.
3. What did the U.S Government do to help alleviate the problems the Great Depression brought to the U.S?
Herbert Hoover; Born in Iowa, Orphan, didn't attend high school, attended Stanford, Mining Engineer, Civil Engineer, Business man, Humanitarian.
Oath of office, Hoover Damn, he tried to look past the great depression. Made the national anthem, Ernt after mobsters. Added more land to parks, Tread of Ancons, withdrew troops from Haiti and Nicargua, Hoover plan. Reconstruction Finance Corporation,
people thought that he was a bad uncaring people, but really he was strong in laissez-faire, right place wrong time, failed to alleviate the situation, very progressive, great depression.
Reconstruction Finance Corporation,- 1932 2 billion dollars in aid to state and local gonvernments
Mexican Repatriation Program
His strategies during depression many people criticized his laissez-faire,rather then try something different, he clung to his program became more defensive, stubborn, hoover lowered taxes and tried to make more jobs. he tried to convince people not to lay of as many people.
Franklin Delano Roosevelt-
Born in New York, 32 presidentNew Deals;
Alphabet soup ;RRR, Relief, Recovery, Reform, AAA, protect farmers from price drops be providing crop subsides to reduce production, educational programs to teach methods of proviting siol erosion
4. What long lasting impact did the Great Depression have on the U.S?
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