1-12- today we talked about groups and started the stock game
1-13- key terms
Consumerism- People should as spend as much money as they can to help the Government
-Buying on credit-allowed middle and lower class people to buy bigger things, can put you in debt
Republican Philosophy of Harding, Coolidge, Hoover- Republican presidents of 1920
-Laissez-faire, rugged individualism, trickle down theory-What republicans believed in in the 1920s,
Laisseze-faire- Government shouldn't get involved in businesses
Rugged individualism-Government should not help citizens that much, it is up to you to take care of yourself
Trickle Down Theory- Government is gonna give tax breaks to the wealthy and it will trickle down to middle and lower class, More hires, More businessses
-Stock- Share part of a Company
-Stock market- Where you buy and sell stock
Dow Jones- 30 Largest Companies in the U.S, Boeing, Walt Disney, IBM, Mcdonalds, Verizon, Walmart, many more.
-Dow Jones Industrial Average-30 biggest companies in US
-Buying on margin-Allowed middle and lower class people to get in the stock market, Borrowed money to buy stock
-Watered stock-Over priced stock
-Stock pooling- The rich buying stock and then taking advantage of lower and middle class
-Speculation-with stocks-Falsely inflating stock prices
-Federal Reserve Board- Major goal is to stop banking panics(Depression), where banks bank, broke country into 12 districts
1/14- Missed Class
1/15-
-income inequality- Major Gap between the rich and the poor
Then we watched a video
1/16-
Cause of stock market crash- Overproduction of goods, uneven distribution of wealth, Too much borrowing from banks, Federal Reserve increased interest rates, Lack of Govt 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 rose, people quit spending money, Great depression.
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