1. Causes of the Stock Market Crash
- stock prices overpriced
- stocks dropped
- buy now; pay later - spend so much & build debt couldn't pay off
- buying stock on credit
- overspeculation during 1920's
- overproduction of goods
- uneven distribution of wealth
- too much borrowing from banks
- stock prcies were grossly inflated, didn't have a real value
- federal reserve increased increase rates
- lack of government regulation
-effects
- investors and businesses lose millions
- thousands of banks fail; savings wiped otu
- businsses 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
2. Causes of the Great Depression
- Overproduction of goods
- Underconsumption of goods by consumers
- Agriculture slump due to overproduction
- High protective tariff policies of the 1920's
- Taxes benefiting the rich- rich get richer, poor get 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
1. 1928 Election
- Herbert Hoover vs Al Smith (said better speaker)
- Prohibition (big topic)
- Herbert Hoover won by a landslide!
- Al Smith was catholic; wanted to get rid of prohibition
2. Stock Market in the 1920's(466-468)
3. Story of the stock market crash-not the causes(467-469)
4. Banks and business' collapse(469)
5. Effect stock market crash had on other countries(469-471)
- US loaned money to Great Britain and it all circled around; stopped after Crash and led Germany to a depression
6. Depression in the cities(472-473)
- Hit manufacturing hard
- Main businesses hit hardest
- Had to layoff people
- Suicide rates rapidly increased; never thought it would get better
- Started working with mafias (organized crime)
- City officials couldn't do anything about it or were getting paid off
7. Depression in the rural areas(473)
- Led to a lot of starvation; farmers couldn't afford equiptment
- A lot of unfaithfulness in the government
- Helped build character in people because people were forced to appreciate what they had
- Farmers did have cows, chickens, etc and could plant things
8. Dust Bowl(474)
- Also known as dirty 30's
- Farmers didn't do crop rotation
- Severe drought
- Black blizzards
- Huge impact on the land
- Destroyed 100 million acres; people would have to leave their homes
- Would move to outer states like Cali
9. Men in the Streets(475)
- Became migrant workers; travel by trains to other towns to try to find work
- Hobos; very dangerous & made a symbol system
- Hoovervilles; small town or villages (houses made out of cardboard or anything they could find
- World War 2 is when things finally got better for these people
10. Women struggle to survive
- Men were upset their jobs were being taken away by women
- Men needed jobs too so were mad
- Many areas refused to hire woman
- Believed women had it easier because they didnt have to be seen in bread lines to get food
11. Children suffer hardships
- Women would abandon husband and kids
- Kids were eating properly
- Would get rickets because weren't getting enough nuricentment
- Would take it upon themselves to leave because felt their parents couldnt feed them (one less mouth to feed!)
12. Social and psychological effects
13. Hoover's background
- Born in West Branch, Iowa
- 1874 (born)
- Moved to Oregon with his uncle because both parents died
- Chairman of American Relief
- Helped with food in WW2
- October 20th,1964 (died)
14. Hoover's philosophy/Cautious steps(479)
- Rugged individualism - people fend for themselves - step up to plate & figure it out
- Well liked for how he handled the Great Depression
- Don't cut wages; don't go on strike! (failed!)
- Very passive and didn't believe in doing much
- Laissez Faire; let alone; government stays out of business
- Trickle down theory; rich people get tax cuts; trickle down to help poor people
- Fiscally Responsible
- All republican philosophys ^^
15. Boulder Dam(480)
- Hoover Dam
- Colorado River
- Nevada & Arizona
- Gave thousands of men jobs
- A lot of workers died for many reasons
- Lights up many cities; same with drinking water
- Hoover was willing to spend a bunch of $ with it, because they're going to end up making money off ofit (eventually pay for themselves; then make a profit)
16. Democrats win 1930 Congressiontal elections(480)
- People werent happy with Hoover so wanted democrat! "change party"
17. Hoover takes action(481)
- Set up a federal farm board (bought up surplus crops)
- National Credit Corporation (large banks would loan money to smaller banks!)
- Make jobs; city workers
- Federal Home Loan Bank Act;
- Reconstruction Finance Corporation; example of trickle down theory!
18. Bonus Army(482-483)
- Promised a bonus check and went to DC to try to get it earlier
- Patman bill- give World War 1 veterans their bonus early
- Hoover wasn't a fan of this ^
- Patman bill didn't pass
- Hoover wouldnt give it to them
- Hoover ordered the army in; used tear gas and things to disperse the crowd
- Fought against it and marched around DC
- Didn't get it when they wanted but did end up giving it to them...
- Herbert Hoover got rid of them by
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