Ch. 14 Test Topics:-- Causes of the Stock Market Crash-Stock Prices were over valued-"Buy now, pay later." Buying everything on credit and people went into debt and stopped buying things.-Buying in the Margins-Overproduction of goods-Overspeculation during the 20's-Stock Market were grossly inflated, did nothave real value-Federal Reserve increased interest rates-Lack of Government regulation-Middle Class and the poor got poorer and the richer get richerEffects-Investors and businesses lose millions$$$-Thousands of banks fail-savings are wiped out-Businessescut production-lay off workers-Unemployment rises-people quit spending money-Great Depression sets in-Depression spreads to Europe and other parts of the world.--Causes of the Great Depression-Overproduction of goods-Under consumption of goods by consumers-Agricultural slump due to overproduction-High protective tariff policies of the 1920’s-Taxes benefiting the rich-rich got richer the poor got poorer-Stock Market CrashEffects of the Great Depression-New Deal programs start-makes the US Gov. much larger-Deficit spending starts-The new deal creates many organizations that are still around today-social security-Fascist, military and communist dictators come to power throughout the worldVicious Cycle of the Great Depression-Companises lose $$ so they lay people off-Unemployment rate goes up1. 1928 Election(466)-Canidates were Herbert Hoover and Al Smith-Prohibition and the prosparity-Herbert Hoover won by a lot2. Stock Market in the 1920's(466-468)-Stock value was not equal to the actual value of the company-No regulations-Pooling-All based on barrowed money3. Story of the stock market crash-not the causes(467-469)-Right from the very beginning on black Thursday it showed a loss of 11%-They bought a US stock and it stopped dropping-Newspapers and Radios made the crash public-On Monday people were starting to sell and the market crashed 13%-Then on Tuesday lost 12%4. Banks and business' collapse(469)-Banks put all peoples money in the stocks so when it crashed and people wanted their money the banks didn’t have anything to give them so they would run out of money and close.-Business’ lost money so they laid people off then people would stop buying goods.5. Effect stock market crash had on other countries(469-471)-Germany was terrible and got worse when U.S. stopped giving them money-Japan had the same problem.-Both lead to dictatorships6. Depression in the cities(472-473)-Suicide.-Organized Crime became huge.-City Officials were paid off and wouldn’t do anything7. Depression in the rural areas(473)-Starvation-Government didn’t want anything to do with helping the people/-Farmers could grow plants and butcher their animals.-Hard to farm with the dust bowl.8. Dust Bowl(474)-“Dirty Thirties”-No crop rotation-Wind picked up the dirt and it would build up to huge winds of dust.-“Black Blizzared”-Some of the cloud were so big they could reach from New York City to Washington D.C.9. Men in the Streets(475)-I did this one.10. Women struggle to survive(475-476)-Women had to start working because their husbands left.-Men were upset because they thought a unemployed man should take that job.11. Children suffer hardships(476)-Kids got rickets-They went hunger-Teens left their families so that their family didn’t have to worry about feeding them.-Kids would work for less12. Social and psychological effects(477)-Crime rate went up-Teens would run away-Marriage rates went down-Divorce wasn’t affordable-Suicide rates went up13. Hoover's background-Born in Westbranch, Iowa-Moved to Oregon after his parents died-Helped people escape England when WWI broke out.-Moved to New York after presidency14. Hoover's philosophy/Cautious steps(479)-Rugged Individualism- let people help themselves-Passive reactions-Didn’t believe in Welfare-Laissez Faire- “Hands off”-Trickle down theory-Tax breaks to upper class then is trickles down to middle and lower classes-Fiscally Responsible- Responsible with your money15. Boulder Dam(480)-“Hoover Dam”-In the Colorado River-Built during Depression-Gave hundreds of men jobs-Hydroelectic power made them money-Drinking water16. Democrats win 1930 Congressional elections(480)-Social Welfare-Tax the wealthy17. Hoover takes action(481)-Stock Market Crash- He was in Shock and inherited the bad economy-He was blamed for the depression-Tried to help Farmers with storing crops-National Credit Coorporation Larger banks bail our smaller banks-Federal Home Loan Bank Act- help lower morage rates so people could afford homes and farms-Reconstruction Finance Coorporation- Gorvernment Loans out money to Banks, Busnesses, smaller goverments to hire people.18. Bonus Army(482-483)-“Bonus Expeditionary Force”-Spring of 1932-Promised a bonus check-Vets wanted the money and Hoover wouldn’t give it to them-They marched around D.C. to protest.-Hoover ordered the military under Macarthur and Eisenhower to force them out.- Made Hoover look a lot worse.
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