-- Causes of the Stock Market Crash
- stock prices were over valued (priced)
- "buy now, pay later" a lot of people sold on credit
- buying on margin, "stock on credit"
- farmers did not do well in the 1920's.
- overproduction of goods
- stock prices were grossly inflated, did not have real value
- Federal Reserve increased interest rates
- lack of government regulation
- overspeculation during the 1920's
- too much borrowing from the banks
Effects
- investors and businesses lose millions of dollars
- thousands of banks failed
- businesses 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
--Causes of the Great Depression
- overproduction of gooods
- it lead to companys not making money
- underconsumption of goods by consumers
- agricultral slump due to overproduction
- they planted to much crops and supply/demand stayed the same
- high protective tariffs policies of the 1920's
- taxes benefiting the rich, rich got richer, poor got poorer
- stock market crash
- BIG REASON FOR GREAT DEPRESSION
EFFECTS
- New Deal programs start-makes the US government much larger
- Deficit spending starts
- The New Deal creates many organizations that are still around today- social sercurity
- Fascit,, military and communist dicators come to power throughtout the world
The Vicious Cycle of the Great Depression
- Companies lose $$ so they lay people off
- unemployment rate goes up and less people buy goods as income has dropped
- Companies profits fall so they have to lay more people off or close
- Cycle repeats itself
1. 1928 Election(466)
- Herbert Hoover (R) Al Smith (D)
- Herbert Hoover won the election
- Al Smith was a catholic and was against prohibition
2. Stock Market in the 1920's(466-468)
- Dow Jones Industrial Average is one of several stock market indicators created by Charles Dow
- Examples: Wal-mart, verizon, Mcdonalds
- it was a dangerous place because they were no restrictions
3. Story of the stock market crash-not the causes(467-469)
- Charlie Mitchell offered lots of loans and he invested millions of dollars to the stock market and he saved the stock market
- Stock Markey crashed 11% right away, US steel Richarnd Whitney tried to bring faith back into the stop market and on Black Friday things got better and was a rebounded. Over the weekend the press made everything public and everyone wanted to withdrawl their money. in two days the stock market crashed 1/4. (25%)
- There were lots of signs that the crash market was going to crash
4. Banks and business' collapse(469)
- people got worried when the stock market went and people would run to the bank and try to get their money but it wasnt there.
- 11,000 banks failed during the great depression
- business failed because people wanted to save their money and no one had the money to buy goods
- 90,000 business clapsed so there was a lot of unemployment
5. Effect stock market crash had on other countries(469-471)
- most countries werent doing as good and the United States cause of the war
- it was a tumbling effect
- Germany did a lot worse and we were giving money to them and we stop giving them money
6. Depression in the cities(472-473)
- it hit the cities a lot worse because of manfactoring and people lost of a lot of money\
- unemployment went up cause factories were losing money
- sucide
- Bread lines and soup were very common in the cities
- People sold apples for as low as 5 cents
7. Depression in the rural areas(473)
- Led to starvation and farmers couldnt afford equipment to farm
- It help people build character and realized what the value of the dollar meant
- Farmers had an advantage over the city people cause they had cows, chickens, and they could plant their own garden
8. Dust Bowl(474)
- Known as the Dirty Thirties
- The Dust Bowl was caused by the farmers cause the farmers didnt take care of the soil and was there was a drought
- Most of the dust ended up in the Atlantic Ocean
- People had to leave their homes because of all the dust
- Okies are people that left Oklahoma and moved to California to find work
- The Great Plains had the most issue with the Dust Bowl
9. Men in the Streets(475)
- Homeless rates went up
- hoboes couldnt find jobs so they went and trains to different cities
- Hoovervilles- the houses would be made out of cardboard or whatever they could find
- homeless rates were high as 25%
- hooverville was named after president hoover
10. Women struggle to survive(475-476)
- Women started working outside their homes and many men thought women were taking their jobs
- In many areas people didnt believe in hiring in women and women had it lot harder then men in the Great Depression
11. Children suffer hardships(476)
- Lot of the children got rickets and were starving
- 2,000 schools close
- Lot of teenagers left their families and became hoboes "wild boys"
12. Social and psychological effects(477)
- Crime rate went up and the marriage rate went up
- People couldnt afford a divorce and high school went up because kids couldnt find work
- sucide went up 30%
- People appreciate their jobs more and their money
13. Hoover's background
- Born August 10, 1874 in west branch Iowa
- Supported the Dam and the Saint Lawernce Sea Way
- Died Oct 20th 1964
- Hoover Dam
14. Hoover's philosophy/Cautious steps(479)
- Philosophy was to leave people alone and let people figure out their own problems and people thought that was the reason why they went into the Great Depression
- He told people not to cut wages and fire employees
- His philosophy was a small governmet
- Rugged Individualism
- Laissez Faire and Trickle Down Theory and Fiscally Responsible
15. Boulder Dam(480)
- Known as the Hoover Dam
- Built in the Colorado River and was built during the tough times and gave a lot of men jobs
- It only took 6 years to build it
- A lot of men died
- It lights up Las Vegas and importmant for clean water and making the power was cheap.. it was a self liquiding project (it paid for itself)
16. Democrats win 1930 Congressional elections(480)
- Everyone blamed Hoover for the bad economy
- Roosevelt won the election
17. Hoover takes action(481)
- Hoover inherited the bad economy
- He tried to the agruiculture back up.. and he tried to help farmers
- The National Credit Cooperation and larger banks would loan money to the smaller banks so they dont close
- Federal Home Loan Bank Act- would lower mortage rates
- Reconstruction Finance Cooperation- wanted people to create jobs for people (hire them)
18. Bonus Army(482-483)
- Hoover sets up tents for the Bonus Army and gives them water
- Hoover sent it Marcarthur and Eisenhower to force Bonus Army out of Washington DC
- The Bonus Army wanted to get their bonus check early
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