1. What were the causes of the stock market crash of 1929 and the Great Depression?
Causes of the Stock Market;
1. Overspectulation.
2. Over production of goods- Low Profits.
3. "Bying on Margin" -Bye stocks on credit.
4. Uneven Distribion of wealth.
5. Too much borrowing from banks due to low interest rates.
6. Stock prices overpriced.
7. Lack of gov't regulation.
8. Red Reserve ^^ Interestrate.
People lost lots of money. Banks failed. Quit spending money. Lay of employess because couldn't pay. Unempolyment rises.
Causes of The Great Depression-
Stock Market crashed in 1929. Banks were failing. Reduction in purchasing. American in purchasing. American Economic policy with Europe. Drought issuses.
Overproduction of goods. Underconsumption of goods by consumers. Agricultural slump due to overproduction. High protective tariff policies of the 1920's.
American Economic Policy with Europe- More of a consequence than cause. Smoot- Hawley Tariff. Over 20,000 imported goods had record tariffs for European Countried. Europe retaliated with their own tariffs. -Protext American companies. Hurts more than helps.
People lost their jobs, so they didn't have money to buy things. They money supply was decreasing. Suppliers and Business didn't have tnough money, so they steeply rose their prices.
During the economic depression there was a drought. There was a longer drought in the southwest. Farmers couldn't produce anything- So than everyone had left.
2. What impact did the stock market crash and Great Depression have on the lives of people in the United States?
Hoovervilles- Were villages for the unemployes. Lived in what they had to build with. Floors were made out of dirt. Families only had one or two rooms to live in. The United Kingdom was most affexted. All of Europe was tremendously affected and some countries were put into a depression of their own. The Dust Bowl covered the affected areas with dirt. The reason for it was because of a drought in 1934 and farmers didn't conserve the land right. People had to wear makes whenever they went outside.
Homlessness- Many mortgages on peoples homes were forclosed and that left millions of people homeless. This lead to people building small shacks or shanty towns. (also known as hoovervilles) Starvation and Illness- Because of a loss of income, many poeple had to go into dumpsters to find meals. Not alot of people actually died bu tthey didn't get a lot of food to eat. Unemployment- At this time, unemplyment was an all time high, 25 percent in the US as high as 33 percent in other countries. Without income, many people starved to death or had to steal their food. Many unemployed workers committed suicide because they had nothing else to live for.
Stock Market- World trade fell. Economic growth fell. One cause of the Great Depression. Bank Failure. Business Failure.
Bank Failures- People tried to withdraw money that wasn't htere. 40 percent of banks collapsed. 1933 people lost 140 billion dollars.
Reconstruction- Hoover- Gave loans to banks, state and local governments, and business to create projects/jobs for people. Have states loans for emergency relief needs. Started under Hoover. Not as successful as Hoover had hoped.
3. What did the United States government do to help alleviate the problems the Great Depression brought to our country?
President Herbert Hoover- Created the Agriculture Market Act of 1929. Believed loval communities should provide relief for unempolyment. RFC (Helped out farmers)- Agency $2 Billion to small governments and gave loans to banks, railroads, and other buinesses. (Trickle- down theory) Settlements of shacks were names after him called "Hoovervilles" Beliveved that the goverment was an umpire, not a player, in the games. Laissez faire.
Franklin D. Roosevelt- FDR was 32nd presidant. He lead the country threw the Great Depression and WWII. He served 4 terms in office- Like 16 years. He died- so just over 12 years. He helped greatly by shaping the government to help the societ. He felt it was the government's job to help the American people. FDR was started of the plan called "The New Deal" FDR started the New Deal to help the economy so the depression would not repeat itself. The first New Deal was focused on helping businesses and banks. It was started in 1933. (32 was the election) This Program was stated to help the Great Depression. It was focused on the 3 R's- Relief, Recovery, and Reform. It was a high number of acts and administrations addressing the horrible effext of the Great Depression.
Significant Legislations: Franklin D. Roosevelt-
1. Home ower's Loan Corportion- Prevernted foreclosure. Refinanced home mortgages.
2. The Federal Emergency Relief Administration (FEF)- Provided assistance to the imemployed and their familys. ($20 million) Provided work.
3. The Emergency Banking Act (EBA)- Reopened Banks. Money was put back into the banks. Many people started uning banks agian. The Banking Holiday- Reopened when it was safe to!
4. Tennessee Valley Authority (TVA)- Government dams and hydroelectric plants for electric power. Hired the unemployed. Developed new fertillizers and taught farmers how to improve crop yeilds.
5. Agriculture Adjustment Administration (AAA)- Reduced the production of staple crops. Paid farmers to reduce the amount of crops they planted. Reduced Crop Surplus to raise prices. Over 6 million pigs were slaughtered to reause prices. A lot of people didn't like the AAA; they thought what they were doing was cruel.
FERA Federal Emergengcy Relief Act- Enacted in 1933. Main functionw as to create it. Distibution more than 20 million dollars in direct aid to the unemploued. This is turn would help the unempoloyed to fine new jobs. Had three primary objectives.
Farm Secutiry Administration (FSA)- Gave small farmers money in order to buy farms. Dust Bowl and Drought forced farmers off of their land. FSA provided relief for these people.
Federal Crop Insurance Corporation- Improved production and maketing of farm products. Started "All-Risk" crop insurance. Guaranteed a percentage of your crops if they are damaged.
1. Worked Progress Administraion (WPA)- Set up a national relief agency and empolyed over 2 million people. All about making work. Established in 1935. Lardest and most comprehensive New Deal Acency! Made to "Make work" Largest!!!! Presented 225,000 concerts and produced almost 495,000 and 475,000 works of art. It did more than any other one. Not all about construction- Helped more groups of people.
2. Securities and Exchange Commision- Regulated Wall Street.
3. National Industrial Recovery Act (NIRA)- Reformed the economy.
4. Social Security Act- Established Social security and promised economic security for the elderly, sick, and poor.
5. Civilian Consercation Crops (CCC)- Hired 250,000 young men to work on rural loval projects. Passed in 1933 durning the "One Hundred Days" CCC members worked 40 hours a week and were paid 30 dollars a month, with the requirement that 25 dollars of that be sent home to family. Members lived in camps, wore uniforms and lived under military discipline.
NYA National Youth Adminsition- Established in 1935. Pushed heavily by Roosevelts wife. In allowed thousands of youngs to stay in school.
EBRA Emergency Banking Relief- Passed five days after taking office- March, 1933. Passed in response to the thousands of banks that closed down. Passed four days after FDR announced the Bank Holiday, which closed banks down temporily. Would close down the bank, reorginize it. Insurance to people's money. It was succseful!
PWA Public Works Administration- Established in 1933. Created many jobs. Responsible for 70 percent of schools. 33 percent of hospitals.
CWI Civil Works Administration- Failure. To costly. It did some good things in the 10-12 months it was around. Payed workers way to high and ran out of money.
FSA Federal Securities Act- Bussniesses had to be truthful about your company. Passed in 1933. Made tthe stock market a safer place fore people to invest their money.
6. The Indian Reorganization Act- Romoved the Native Americans for state courts.
Second New Deal- THis is another part to the New Deal. This had a stronger focus on the social reform. In April, he created the Works Progress Administration (WPS) to provide jobs for unemployed people. WPA focused more on building pose offices, schools, bridges, and highways. In Juny 1935, the Wagner Act was created to supervise union elcetions and businesses from treating the workers unfairly.
4. What long lasting impact did the Great Depression have on the US and world?
After the crash in the stock market during 1929 and the collapse of more than 40 percent of American banks by 1933, banking methods became strict as well as finanial proections, enforced bu the newly formed Securities and Exchange Commission (SEC) and the Rederal Depoit Insurance Coporations (FDIC)
SEC- Enforces scurity laws and to protect investors and keep markets secure.
FDIC- Protects money.
Miscellaneous- Crime rate rose. Mass migration. Congress passong the Social secutiry act in 1935 provided disbility, Unemployment, and Pensions for old age (Social Security) Hard to get education. Sports were used to distract from depression. People used radio for entertainment because it was free to listen. Promicing health care.
Relief programs and tariffs- Most countries had relief grograms. People refuse to bank. Smoot hawley tariff act was introduced on June 30, 1930 teaced imported goods into the US.
Frankin Roosevelt- The great Depression had a changes that affected the U.S. society back than but it also today.
Securities and Exchange Commission (SEC)- There mission in the make sure that people follow the law. Individuals and companies in trouble for violating the law.
Federal Deposit Insurance Corporation (FDIC)
National Labor Relations Board (NLRB)
Tenessee Valley Authority (TVA)- Is a federally owned coportation in the US created by congressional charter in May 1933- to preovide navigation, flood control, electrivity generation, fertilizer manufacturing,a nd economic deverlopment in Tennesse Valley, they were used to speed up economic growth.
RSDI- Fetirement, Survivors, Disability Insurance.
Criteria- Cirizenship.
Supplemental Secutiry Income. (SSI)
Finacial recorces- 2000. income 718. Socail Security Number. Medicaer.
New Deal proframs start-makes the US government much longer. Deficit spending starts. The New Deal creates Deal creates many organizations that are stilla round today- social security. Fascist, military and communist dictarors come to power throughout the world.
Radio- Listened to Sports and World News. The ability to hear what's going on around the world without being there.
Electronics- Klevinator Washer Wringer was the first clothes washer.
Tappan Gas Range- First oven. Ran off of gas. In homes.
New GE Thrifty Six Ran off electricity. It didn't need an iceblock in the freezer to keep it cold. You could keep bigger things in there.
Philco Radio. Could hear what was going on around the world and didn't have to be there.
Sports- Boxing- Joe Louis. Black man, that beat German guy- Mac Schmeling. Football- New leather padding. Just really started. Baseball- African American players. Very first player. Record Crowds because black people were proud and wanted to go see. Motorsports- Powerboat and Automobile racing. Really kicking off. Nascar came up from that.
Comments