1. Causes of the SMC and GD-
- Overspeculation(people playing the stock market for short term which drives the prices up) ,
- overproduction, buying on margain,
- uneven distibution of wealth,
- too much borrowing from banks,
- *******stock prices were grossly inflated did not have real value (companies losing money but stock prices going up),
- federal reserve increased rates(raised rates then people stopped buying and that helped a lot),
- lack of government regulation
-Effects of the Stock market crash
- thousands of banks fail
- business lay off workers
- investors lose millions
- depression starts in
-Causes of GD-
- Over production of goods
- under consumption of goods by consumers
- Ag slump
- SM crash
- High protective tariffs
- taxes benefiting the rich-rich got richer poor got poorer
-Effects of the new deal
- New deal programs start-make the US government much larger
- deficit spending starts
- new deal creates many organizations that are still around today- social security
- fascist, military and communist dictators come to power throughout the world (Hitler).
-The vicious cycle of the great depression
- companies lose money 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. Very hard to get out of it
- J.P Morgan
- Did didn't lose all his money when he tried to save the stock market. One of the most powerful men
-Johnny Rockefeller
- skeptical of the stock market boom he didnt loose money bc he noticed it was going to get back
-Coolidge
- President before Hoover
- He should have been more blamed than Hoover bc it was most of his stuff that was in place
-Hoboes Hopping Freight Trains
- Many high school student would drop out of school and go on trains looking for work from town to town
-Selling apples
- They would buy an apple then go to an industrial area and cell them and make a couple cents profit
-Dust Bowl
- Very bad timing when it happened
- Bc bad top soil was farmed and it caused that
- Irrigation came in after this
-Okies
- People who left the dust bowl
-Hoover's Ironic Speech
- He says how poverty will banished but then depression hit
-Suicide Rates
- Went way up
-Hoovers campaign promise
- A chicken in every pot
3.
-Hoover Dam project
- Made many jobs
- paid for itself
- helped an area to stop flooding
-RFC Reconstruction finance corporation
- Gave money to big businesses to make jobs
Comments