Jan 29th - Feb 2nd

[6Hannah]

Monday
• Talking about the new forum posts
• Discussion about religion
• Repetition Friday
• The Great Depression (1929-1940)
o Buying on credit
o Republican philosophy-Harding, Coolidge, Hoover
 Laissez-faire, rugged individualism, trickle down theory
o Stock
o Stock market
o Dow Jones Industrial Average
o Buying on margin
o Watered stock
o Stock pooling
o Speculation-with stocks
o Income inequality
o Federal Reserve Board
• New York Stock Exchange
• Dow Jones
o The Dow Jones Industrial Average (DJIA) is one of several stock market indicators created by Charles Dow in 1896
o The Dow jones consists of 30 of the largest companies in the US
1. 3M
2. American Express
3. Apple
4. Boeing
5. Caterpillar
6. Chevron
7. Cisco Systems
8. Coca-Cola
9. DuPont
10. ExxonMobil
• Dow Jones record (top 30 biggest companies)
• Dow Jones history
Tuesday
• Video about Dow Jones
• Watered stock= overprized stock
• Jesse Livermore
• Stock pooling= buying stock and selling it for more money; illegal today
• Black Tuesday, Oct. 29,1929
o Stock Market Crash
o Dow is going down by 11%
• Federal Reserve System
o Created in 1913 under President Woodrow Wilson
o Major goal was to stop banking panics (runs)
o Broke the country into 12 districts each with a Federal Reserve Bank
• Federal Reserve’s Powers
o Banker’s Bank-stop runs
o Controls the amount of money in circulation
 Controlling inflation and deflation
o Controls interest rates for borrowing money
 Encourages people to borrow money for big purchases-homes, cars, etc.
Wednesday
•
Thursday
• Causes of the Stock Market Crash- 1929
o Stock prices were grossly inflated, did not have real value-watered stock prices
o Overspeculation during the 1920’s
 Led to overpriced stock
o “Buying on margin”
 Led to people being in debt and watered stock prices
o Overproduction of goods
o Uneven distribution of wealth
o Too much borrowing from banks
o Federal Reserve increased interest rates
o Lack of government regulation
• Map (If U.S. landmass would be divided like U.S. wealth)
• Effects of the Stock Market Crash
o Investors and businesses lost millions $$$
o Businesses cut production-laid off workers
o Unemployment rose-people quit spending money
o Great Depression started
o Depression spread to Europe and other parts of the world
• Causes of the Great Depression
o Overproduction of goods
o Underconsumption of goods by consumers
o Agricultural slump in 1920’s due to overproduction
o High protective tariff policies of the 1920’s
o Taxes benefiting the rich-Trickle-down
o Stock Market Crash
o Banks closing
• Effects of the Great Depression
o New Deal programs start-makes the US government much larger
o Deficit spending starts
o The New Deal created many organizations that are still around today-social security, welfare
o Fascist, military and communist dictators come to power throughout the world
• The Vicious Cycle of the Great Depression
o Companies lose $$ so they lay people off
o Unemployment rate goes up and less people buy goods as income has dropped
o Companies’ profits fall so they must lay more people off or close
o Cycle repeats itself
• Pictures of Hoovervilles
• Pictures of Breadlines
• Soup kitchens
• Hoboes Hopping Freight Trains
Friday
• I wasn’t in class