Ch. 14 Test Topics:
-- Causes of the Stock Market Crash
*Stock prices were over valued
*People started selling stock because they got nervous
*Buy now pay later
*Buying on margin (buying stock on credit), goes back to demand
*Overspeculation during the 1920's- people that play the internet to make money/ drove demand for that piece of paper
*Overproduction on goods
*Uneven distribution of wealth
*To much borrowing of banks
*Federal Reserve increased interest rate
*Lack of government regulation
-- Effects of the Stock Market Crash
*Investors and businesses lose millions of $$$$
*Thousands of banks fail-savings are wiped out
*Businesses cut production-lay off workers
*Unemployment rises-people quit spending money
*Great Depression sets in
*Depression spreads to Europe and other parts of the world
--Causes of the Great Depression
*Overproduction of goods
*Underconsumption of goods by consumers
*Agricultural slump due to overproduction
*High protective tariff policies of the 1920's
*Taxes benefiting the rich-rich got riches, poor got poorer
--Effects of the Great Depression
*New Deal programs start-makes the US government much larger
*Deficit spending starts
*The New Deal creates many organizations that are still around today-social security
*Fascist, military and communist dictators come to power throughout the world
--The Vicious Cycle of the Great Depression
*Companies lose $$ 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)
*Canidites were Republican Herbert Hoover and Al Smith
*Prohibition and Economic Growth of our Economy
*Smith didn't like prohibition and that was probably why he lost
*Hoover planned on keeping everything the same
*Al Smith was a catholic so they were afraid that they would change the national religion to catholism
2. Stock Market in the 1920's(466-468)
*Stock is a part of a company
*Stock Market is where people buy and sell stock
*The Dow Jones Industrial Average is one of several stock market indicators created by Charles Dow
*Its the 30th largest companies stocks complied to show if the stock market is going well
*It was a dangergous place because the government had no regulations on the stock market.
3. Story of the stock market crash-not the causes(467-469)
*March of 1929 the stock market had a few bad days
*Charles Mitchell invested millions into the stock market and stopped it from crashing
*On Black Thursday, was the day the market crashed occured on
*11% immedietely and people went crazy
*US steel was bought by Richard Whitney to try and save the market and put faith in the market
*Black Friday got better and things rebounded
*Over the weekend the press made things look terrible
*Black Monday the market crashed 13%.
*Black Tuesday the market crashed another 12%
4. Banks and business' collapse(469)
*Stock prices would go up, and people would get worried and try to sell their stocks
*9000-11000 banks closed
*Businesses failed because they had over production of goods and no one buyed
*Businesses had to lay off people because they were making no money
*Caused people to lose their life savings and go without work
5. Effect stock market crash had on other countries(469-471)
*Germany went into a huge depression
*Hitler became powerful in 1933
*People couldnt even afford a loaf of bread
6. Depression in the cities(472-473)
*When stock market crashed it affected the manufacturing company the most
*They had to lay people off of work
*The suicide rate was high
*Were in mafia gangs
*Breadlines in the cities
7. Depression in the rural areas(473)
*Lead to alot of starvation
*Farmers couldnt pay for the equipment for the farming
*Unfaithfulness on the government
*Helped build character, learned the value of the dollar and appreciated what they had
8. Dust Bowl(474)
*Oakies moved to California for work
*Six year time period 1930-1936
*Reached from New York to Washington DC
*Caused because the severe droughts and the farms didnt maintain there farm land properly
*They didnt do crop rotation, fallow fields or cover crops
*People had to leave there homes because of the destruction and move to California to pick fruit for starvation wages since they owned no land there
*Dust Storms called "Black Blizzards or "Black Rollers"
*Destroyed 100,000,000 million acres of land
*Occured in Colorado, New Mexico, Oklahoma, Texas, Kansas
9. Men in the Streets(475)
*Homeless rates went up high
*Alot of the men became hobos
*Huvervillies on the side of the train tracks
*Didnt get better till world war 2
*Women made uniforms, men fought in war
*Homeless rates were at high at 25%
10. Women struggle to survive(475-476)
*Women started working out of there homes
*Men resented it, becasue they thought other men that dont have jobs need them instead of women
*Many areas they refused to higher women
*They thought women had it better, since they didn't wait in bread lines
11. Children suffer hardships(476)
*Families didnt get a single employment raise
*Kids ate unhealthy
*Kids had ricketts and other diseases
*2000 schools closed, so they didnt have much education
12. Social and psychological effects(477)
*Crime rate was high
*Kids felt bad there parents had to feed them
*Marriage rate went down
*Divorce rate wasnt there because they couldnt afford one
*Education for colleges went down
*High school went up
*People appreciated jobs more
13. Hoover's background
*Born August 10th in Westbranch, IA
*He moved to Oregon with his parents since his parents died
*He became an enginner
*Supported Saint Lawerence Seaway
*After president, he became chairman of the boys club
*Helped with food and WW2
*Died October 19th
14. Hoover's philosophy/Cautious steps(479)
*Rugged individualism
*He said take problems on yourself
*He called farmers and bankers together to try and help
*Told labor leaders not to fire people or go on strikes
15. Boulder Dam(480)
*Or the Hoover Dam
*Build in the Colorado RIver
*Between Navada and Alabama
*Gave thousands of men jobs
*Was build during our tough times
*Had 6 years to build it and build it in 4
*Alot of issues, alot of men died of heat exaustion
16. Democrats win 1930 Congressional elections(480)
*Many Democrats won in the 1930's
*Believed in social welfare
*Republicans were alot of trouble
*Rosevelt walked all over Hoover
17. Hoover takes action(481)
*When stock market crashed he was kinda in shock
*People only blamed Hoover
*Hoover tried to get the agricultural back up
*Set up Federal Farm Board would buy up surplus crops, would store then sell them
*National Credit Corporation said that large banks would loan money to small banks ensuring that they wouldnt close in times of cricis
*Federal Home Loan Bank Act to help lower morgage rates so people could still own there home and farms
*Reconstrucion Finance Corporation would loan out billions of dollars to big companies expected them to create jobs.
18. Bonus Army(482-483)
*10,000-20,000 went to DC to get money, because they fought for WW1 and were promised a bonus check
*President Hoover wouldnt give it to them
*They fought against it and marched around Washington DC
*The people eventually got it later
*Hoover ordered the military in and used gas to get rid of the crowd
*Made Hoover look very bad
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