On this day we finished up the blog discussion. Here are the notes:--Causes of the Stock Market Crash-Buying on margin (buying stocks on credit). When no one buys, it plummets. Originally based on something that wasn't there. Permanent prosperity was before. Stock prices became overvalued, so eventually people start to sell due to panic. Overspeculation. Overproudction of goods. Too much borrowing from banks. Uneven distribution of wealth. Federal Reserve increased interest rates. Lack of government regulation.--Causes of the Great Depression-Overproudction of goods. The Vicious cycle-companies lose money, so they lay people off, so people don't have money to spend. It repeats. Underconsumption. Dust Bowl ruined farming for the 30's. Tariffs became higher, so less oversea trading. Obviously, the stock market crash. Taxes benefiting the rich-rich got richer, poor got poorer. Droughts in the great plains.1. 1928 Election-Herbert Hoover vs. Al Smith. Hoover was the Republican canidate and Smith was the Democrate canidate. Hoover won the election by a landslide victory, due to the fact that he was Republican. Became the last Republican president until Eisenhower. Smith was against prohibition. Smith was a Catholic.2. Stock Market in the 1920's-Stock prices rose, especially the Dow Jones, which is a stock measurement tool, or an indicator. Dow Jones is the 30 biggest companies of the 1920's. Examples include Disney, Verizon and other like that today. Reached 381, a very high number, in 1929. A stock is a share of a company. Investors couldn't complete their loans, money was permanently lost.3. Story of the stock market crash-not the causes-In 1929, March there was a mini-crash, so people started selling, nervousness. Charley Mitchell saved the day due to continuing with loans. Then Black Thursday, October 24th with the crash. Selling continued, but the big hit was Black Tuesday, the 29th of October. Charley Mitchell tried again, but ultimately failed. He lost everything.4. Banks and business' collapse-9-11,000 banks closed during the Great Depression. People would make bank loans, but when people wanted thier money, almost always in a huge crowd, they would run out of money. Businesses overproduced because of underconsumption. Business cuts and lay-offs, 90,000 businesses went backrupt over the Great Depression. 25% unemployment was the highest it got.5. Effect stock market crash had on other countries-The Depression spread to foreign countries. Banks closed and businesses went bankrupt as well. Dictatorships would form as well in Japan and Germany, as well as Spain. Overall negative impact. Helped lead to WWII.6. Depression in the cities-It sucked. Garbage was put together to form homes/shantytowns, aka Hoovervilles. Cars could be used as well. Racism was popular in the cities, but was intensified because of blacks "stealing jobs" when whites thought they should get them. Latinos were deported for "stealing jobs". More left outright because of the hatred toward them. Breadlines where people could get food and cltothing for virtually free. Local government and churches took charge of these. Lines were long. Women didn't want to join the breadline. They were "too proud". Men had jobs to bring food home. Soup kitchens were popular as well. Hoboes hopped the freight trains, as well as teenagers, a dangerous act that was done to look for jobs. Selling apples for a penny or two from venders. Different from today.8. Dust Bowl-Across the midwest, storm even got to New York City. 100,000,000 acres of farmland lost topsoil due to these storms. Reason the decade is also known as the Dirty Thirties. After it ended, they did many things so that this would not happen again. Preperations included planting trees. Homes weren't as good as today, so dust would enter the home. Oklahoma panhandel effected the most by the Dust Bowl. FSA took pictures of the Dust Bowl. Oakies moved west to avoid the dust storms, packing everything, a negative thing.9. Men in the Streets-Men unemployed left home because they couldn't provide for their family. Didn't want to go home, worked in soup kitchens, joined breadlines, and became hoboes jumping on trains and things. 300,000 hoboes traveled the country, sometimes doing criminal acts, and formed their own language, like symbols of bread, meals, money opportunities, sleeping places/resting places, water, and danger.10. Women struggle to survive-Before the Great Depression, women worked outside homes, but when the Depression hit, they couldn't work anymore. Even if they could work outside home, pay wasn't as good, were descriminated against.11. Children suffer hardships-Children mostly had to fend for themselves in the Great Depression. Teenagers would do what the hoboes did, jump on trains and try to search for jobs. Schools were shut down in the 30's, which didn't allow some kids to go to a school, which IS negative, despite what everyone else thinks. College-bounds kids ended up working, their dreams crushed.12. Social and psychological effects-Suicide was common, a 30% rise, doctors and dentists couldn't be visited, state mental hospitals became full, dreams became crushed, especially high schoolers, but it brought people together, an effect of this is why old people don't spend as much money as the younger people.13. Hoover's background-Born in Iowa. Quaker family with strict religious upbringing, went to college and became an engineer. Worked in Belgium food department in WWI. Became a humanitarian. President 1928-1932.14. Hoover's philosophy/Cautious steps-Didn't believe in welfare. Wanted to stop world trade to focus inward/high tariffs. He wanted companies to keep people in the work force, not have them fired. Trickle-down theory, lassez faire, rugged individualism, and fiscally responsible were the things that gave trouble.15. Boulder Dam-Is 700ft tall and 1200ft long (apprx). Used the profit to make construction. Made electricity for many people. Agriculture grew. Western cities got water from the dam. Eventually they gained money after they reached the very high cost prices. Is on the Colorado River, originally called Boulder Dam, now called the Hoover Dam.16. Democrats win 1930 Congressional elections-Hoover was Republican and many went against him. He got the blame for the Great Depression, which was why. Senate was Republican by one vote. Republicans lost almost all of their popularity.17. Hoover takes action-Hoover also did other things beside the Boulder Dam. Started the Glass Stagall Act, which was completed under FDR, trying to make banks safer and releasing gold reserves. Cut 160,000,000 dollars in taxes. Reconstruction Finance Corporation: $2,000,000,000 to banks, governments, insurance companies and so on. Hoover hoped they would hire more people and/or expand business. Did not give direct relief to people. Federal Farm Board bought crops and kept them in bins, selling them when the price was high. Federal Home Loan Bank Act helped people keep their homes and barns. National Credit Corporation set up by banks to loan money to other banks in need.18. Bonus Army-WWI veterans gathered in Washington, D.C. to protest the signed checks that they couldn't get now due to the Great Depression. Hoover accepted them because of Constitutional rights. Bill didn't pass, and most left, but Attorney General sent in military to get the rest out.This was the end. After we wrapped on that, we kept working on our projects.
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