January 12th - 16th - Blogs

Jan. 12th - We learned about the stock market - it is located in New York City -

Jan. 13th - We went over stock markets again, and we got some new vocabulary words (Listed below)

++Consumerism - People should spend as much money as they can to help the economy

++Buying on credit - Buy now, pay later - pay it off at the end of the month

++Republican Philosophy of Harding, Coolidge, Hoover - 3 republican presidents of the 1920's

++Laissez-faire, rugged individualism, trickle down theory - Let them be. Leave them alone. Keep govt's hands out of businesses. Rugged indiv- its up to you. Don't depend. Govt. gives tax breaks - helps middle/lower class people

++Stock - Buy part of a company

++Stock market - where you buy and sell stock

++Dow Jones Industrial Average - 30 largest companies in the U.S. - ATNT, Coke, Disney, Home Depot, McDonalds, Nike, Verizon, Walmart, Visa...

++Buying on margin - Allowed everybody (even middle/lower) to get into the stock market. When stock goes down, you need to cover a loan

++Watered stock - overpriced stock that were bought on margin

++Stock pooling - no rules or regulations in the 1920's - rich guys bought cheap stock then sold it expensive

++Speculation with stocks - major cause of the crash - researching high risk stocks then buying and selling

++Income inequality - The rich and poor people - the rich got richer, and the poor got poorer.

++Federal Reserve Board - group of people in charge of running the system - created in 1913 - very important - most powerful - controls economy - major goal to stop banking runs - it's a banker's bank - borrow money so they don't get closed down - controls inflation and deflation in banks

Jan. 14th - We didn't have class due to the bomb threat

Jan. 15th - We talked about things to improve on the bomb threat and we finished the key terms. We also watched a movie on income and inequality, also on the stock market crash.

Jan. 16th - We talked about the causes of the Stock Market Crash(1929)

--Stock Market Crash Causes - Prices were grossly inflated, didn't have real value - watered stock (Overpriced)

- Over speculation during 1920's led to watered stock

- Buying on margin - led to people in debt and watered stock prices

- Overproduction of goods, uneven distribution of wealth, too much borrowing from banks

- Federal Reserve increased interest rates and lack of government regulation - no rules

--Stock Market Crash Effects - Investors and businesses lose millions of dollars

- Thousands of banks fail - savings are wiped out

- Businesses cut production - lay off workers

- Unemployment rises - people quit spending money

- Great Depression sits in

- Depression spreads to Europe and all around the world

--Great Depression Causes - Overproduction of goods - Under consumption of goods by consumers

- Agricultural slump due to overproduction

- High protective tariff policies of the 1920's

- Taxes benefiting the rich, the rich got richer; the poor got poorer

- Stock Market Crash

--Great Depression Effects - New Deal programs start - makes the U.S. government 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

--Vicious Cycle of The GD - Companies lose money 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 iself

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