Ch. 14 Test Topics:
-- Causes of the Stock Market Crash
1. Stock prices were overvalued
2. People started selling stocks and got nervous
3. People quit buying things so sales went down for companies
4. Buying on margin (money was not truely there)
5. Overproduction of goods.. couldn't make money
6. People borrowed too much from banks
7. Overspeculation during 1920's
Effects:
-Investors and businessed lose millions $$$
-Banks fail..savings wiped out
-Businesses cut production..lay off workers
-Great Depression sets in
--Causes of the Great Depression
1. Overproduction of goods
2. Underconsumption of goods by consumers..nobody bought
3. Agricultral sluump due to overproduction
4. High protective tariff policies in the 1920's
5. Taxes benefiting the rich-rich got richer, poop got poorer
6. Stock Market Crash**
Effects:
-New Deal programs start-making US government 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 Vicios Cycle of THe Great Depression
-companies lost money so they lay people off
-unemployment rate goes up and less people buy goods as income dropped
-Companies profits fall so they have to lay more people off or close
-Cycle repeats itself
1. 1928 Election(466)
-Herbert Hoover and Al Smith
-Hoobert wanted to keep prohibition..Smith wanted to get rid
2. Stock Market in the 1920's(466-468)
-Dow Jones is the 30 largest and most widely held public companies in the US
3. Story of the stock market crash-not the causes(467-469)
-Thursday..crashed 11% and it got chaos
-Friday..things got better
-Weekend..press publicized how the stock market is going to crash
-Monday..market crashed 13%
-Tuesday..12% more
4. Banks and business' collapse(469)
-Stocks crashed and banks lost money
-Businesses didn't make any money because nobody bought
5. Effect stock market crash had on other countries(469-471)
-Other countries were more poor
-Was harder for them
6. Depression in the cities(472-473)
-People lost money..lost their jobs
7. Depression in the rural areas(473)
-Couldn't produce crops anymore so they lost money
-Government wouldn't help the farmers
8. Dust Bowl(474)
-Known as dirty thirties
-Caused because farmers didn't do the right on their land
-couldn't see 3 feet in front of you
-had to leave homes and had to move to outer states(Cali)
9. Men in the Streets(475)
-Homeless rates went up
-Hobos..
-Hoovervilles..places to stay
-Had bread lines
10. Women struggle to survive(475-476)
-Women started to get jobs outside, and take mens jobs
11. Children suffer hardships(476)
-Many woman bailed their children
-Kids got rickets
12. Social and psychological effects(477)
-Education to colleges went down
-Suicide rates wen up 30%
13. Hoover's background
-Born in Westbranch, Iowa
14. Hoover's philosophy/Cautious steps(479)
-How he handles the Great Depression
15. Boulder Dam(480)
-Built in the Coloradeo river
-Built during our tough times..gave men jobs tho!
-Done on 4 years
-Workers died due to illness, not safe..
16. Democrats win 1930 Congressional elections(480)
-People blamed Hoover for things
17. Hoover takes action(481)
-Set up social work places
18. Bonus Army(482-483)
-Military people were promised a bonus check and went to DC to demand it
-Hoover wouldn't give it to them
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