Causes of the Stock Market Crash-1929
- Over speculation during the 20s
- Overproduction of goods
- Buying on margin
- Uneven distribution of wealth
- Too much borrowing from banks
- Stock prices were grossly inflated, did not have real value
- Federal Reserve increased interest rates.
- Lack of government regulation
Effects of the stock market crash
- Investors and businesses lose millions
- 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.
Effects of the Great Depression
- New deal programs start makes the US govt much larger
- Deficit spending starts
- The New Deal creates many organizations that are still around today social security
- Fascist, military and communist dictators and junk.
The vicious cycle of the great depression
- Companies lose money so they lay people off
- Unemployment rate goes up and less people buy hoods as income has dropped
- Companies profits fall so they have to lay more people off or close
- Cycle repeats itself
Dust bowl
- Hurt the agriculture down south
- Withered the soil away
- Lots of erosion
Mcnary haugen bill
- In early 1924, senator Charles mcnary of Oregon and rep gilbert n hougen of Iowa introduced a bill calling for the following
- A federal farm board was to be created to purchase surplus farm production at pre-world war one prices; the surpluses were to be stored until domestic conditions improved or until a decision was made to offer them on world markets.
Hoovers ironic speech
- We in America today are nearer to the final triumph over poverty than ever before in the history of this land…we shall soon with the help of god be in sign of the day when poverty will be banished from this land
- Hoover in his acceptance speech in June, 1928.
Dow jones
- The dow jones industrial average is one of several stock market indicators created b;y Charles dow.
- Dow compiled the index as a way to gauge th performance of Americas stock market
- Today the average consists of thirty of the largest and most widely held public companies in the US’
Black Tuesday
- The day the stock market crashed?
Hoover dam
- Boulder dam, located 34 miles from LV is one of the engineering marvels of the world.
- Hoover Dam is 726 feet high and 660 feet thick at its base.
- The hoover dam project including the dam, the all American canal, the town of Boulder City, highways, railroads and various other things.
Relief reform, and recovery
- Relief for the needy
- Economic recovery
- Financial reform
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