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)
6. Depression in the cities(472-473)
7. Depression in the rural areas(473)
8. Dust Bowl(474)
9. Men in the Streets(475)
10. Women struggle to survive(475-476)
11. Children suffer hardships(476)
12. Social and psychological effects(477)
13. Hoover's background
14. Hoover's philosophy/Cautious steps(479)
15. Boulder Dam(480)
16. Democrats win 1930 Congressional elections(480)
17. Hoover takes action(481)
18. Bonus Army(482-483)
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