January 12- Discussed Stock Market Game. Defining terms of Stock Market.
-Consumerism- belief that it is good for people to buy a lot of things
-Buying on credit- buy something now and pay it later
Republican Philosophy of Harding, Coolidge, Hoover-
-Laissez-faire- policy of just letting stuff happen without getting involved, rugged individualism- people succeed without the government, trickle down theory- tax breaks to the rich
-Stock- buying a piece of a company
-Stock market- where people buy and sell stock
-Dow Jones Industrial Average- 30 largest companies of the US stocks
-Buying on margin- borrowing money to buy stock
-Watered stock- overpriced stock
-Stock pooling-
-Speculation-with stocks- buying something quickly and sell it quickly
-income inequality- disparity between the rich and poor in our country.
-Federal Reserve Board- created in 1913 under Woodrow Wilson, major goal was to stop banking panics, Broke the country into 12 districts each with a Federal Reserve Bank
Causes of Stock Market Crash
- Stock prices were overvalued, did not have real value-watered stock prices
- Over speculation during the 1920's
- Buying on margin
- Overproduction of goods
- Uneven distribution of wealth (income inequality)
- Too much borrowing from banks
- Federal Reserve increased interest rates
- Lack of government regulation
Jan-13- Took notes on Stock Market Crash
1-14-15- Took notes and Watched video on Stock Market Crash
1-15-15- Continued watching the video on the Stock Market Crash
1-16-15- Took notes '
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
Causes of the Great Depression
- Overproduction of goods
- Under consumption of goods by consumer
- Agricultural slump due to overproduction
- High protective tariff policies of the 1920’s
- Taxes benefiting the rich, rich got richer, poor got poorer
- Stock market crash
Effects of the Great Depression
- New Deal programs start-makes the US gov’t much larger
- Deficit spending starts
- The New Deal creates many organizations that are still around today- social security, welfare
- Fascist, military and communist dictators come to power throughout the world
The vicious cycle of the Great Depression
- Companies lose money so the 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
Comments
Good!