Great Depression Presentations.
1) What were the causes of the Stock Market Crash and the Great Depression?
Stock is a unit of ownership of a company. When stock goes bad it is called a bare market. The stock market crashed on October 29th, 1929. It is referred to as Black Tuesday. There are 3 main causes for the crash. Buying on margin-This is when investors barrowed a lot of stock, when the stock prices went up. The prices then dropped and the investors’ stocks were then almost worthless. Using Credit- Using credit was like buying on margin. People would buy the stocks with credit. People would buy what they wanted without having the money. They would get into big debt and then quit buying. With hardly anybody buying things the economy went down fast. Speculation- This is buying stocks in the hope that the market will keep doing well, and that you can make a quick turn around on your money and loans. The reasons for the Depression were the Stock Market crash, crisis in farming, people using credit, unequal distribution of income, war debt, and Tariffs. Farming- There was an over production of crops. Farmers could not pay off their loans. Distribution of income- Most Americans could not afford to buy things. Rich people got richer and poor people got poorer. Credit usage- The federal government lowered interest rates. This made it easier for people to borrow money. People would borrow money and then not be able to pay it back. The people got into huge debt. Tariff- Hawley smoot Tariff Act was passed to help farmers compete with foreign competition. It was thought to make the economy better because the Americans would buy our goods, but it actually hurt us.
2) What impact did the SMC and the GD have on the lives of the people in the US?
Many farm families went bankrupt and would lose their farms. People started burning corn instead of coal because it was cheaper. It made the country smell like popcorn. Blockades were set up to keep smuggled crops from getting to the city. Farmers were trying to drive up the prices of their goods so that they could actually make some money. Farmers were a little bit better off because they could produce their own food.
Banks were forced to close because they went bankrupt. There were bank runs. This is where people would rush to the bank to try to get their money before the banks closed. If the bank closed they wouldn’t get their money. A bank holiday was implemented. This was where the banks would temporarily close to allow them to make a comeback.
In the city it was very unsanitary. People lived in tenements, eat at soup kitchens, people signed up for welfare, and the suicide rate went up. People would live in places called Hoovervilles. People would live in Shanty houses. These were just little shacks basically. They were usually near soup kitchens. They were named after Herbert Hoover. They ate anything they could find that was eatable. They cooked food on trash cans.
Women had to work a lot of hours to try to support their family. This boosted the equality between men and women. Men were angry though that some women had jobs when some men did not.
3) What did the U.S. government do to help alleviate the problems the G.D. brought to our country?
This was my group’s topic.
4) What long lasting impact did the G.D. have on the US and the World?
WWII was pretty much a direct consequence of the G.D. We were not able to loan money to Germany. This allowed Hitler to come to power because they needed a way to fix their economy, and he promised he could do it. Also Japan could not get supplies from the U.S., so they invaded China.
The FDIC was created to protect people’s money in banks. People didn’t want to put their money in banks because if it failed, they would lose it. The FDIC fixed this problem. If a bank fails, you will still get your money. This is still around today.
The FHA was established to insure loans that were given to people who were building or buying a house. This was created for people who were not wealthy. This is still around today.
Social security was created to help protect the lives of old and disabled people. It was a fund created to give you a safety net when you retire. When you receive a paycheck a portion of it is taken out and sent to the national social security fund. The longer you stay employed the greater the benefits from social security.
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