-Blog Discussion.
Review: Stock market crashed on Tuesday. Record of 12.6 million stocks sold. During the weekend between Thursday&Monday, pepole
-Banks and buisnesses collapse.
*Stock market crashed&that caused problems.
*A lot of banks were handing out loans, and other things, so a lot of banks ended up closing.
*The federal reserve bank was supposed to help prevent banks from closing down, in this case, it didn't help.
*Approximately 11,000 our of 25,000 banks failed by 1933. In 1929 alone 600 banks closed down.
*FDIC-Federal Department Insurance Cooperation.
*between 1929 and 1932 the output and input of stuff was about 50% than it was before.
*25% of Americans were unimployed.
*50% minorities were unemployed.
*People don't spend money->Business' don't make money->Lay people off/ close down.
*90,000 buisnesses went bankrupt between 1929&1932.
*The unemployment rank peaked in 1933.
-Effect stock market crash had on other countries.
*A lot of higher tarriffs, which lead to less trading between other countries. Tarriff--tax on imported goods.
*High tarriffs were a great cause of the great depression.
*Lead to a lot of radical leaders, like Hitler.
*Japan had very little resources, and the government tried to hold on. They invaded the northern part of China to get more resources.
*The DAWs plan said to Germany that they'd give them a year, and they wouldn't have to pay off any debts for a year.
*The Great Depression helped lead to world war 2, because it started all these people having dictatorships.
-Depression in the Citys
*Hit hard because a lot of people had factory jobs. No one was buying anything.
*They had to lay people off.
*Landlords had to evict people because they couldn't pay their rent.
*No one was making any money.
*People were trying to live off of the victory gardens that they made during the war.
*People lost jobs and homes so they went to the outskirts of cities. They called thes shacks made out of plywook and cardboard boxes Hoovervilles. These came from President Hoover because he basically didn't care about anyone.
*There were bread lines that were organized by churches and the red cross and other social organizations.
*People would sell apples, a lot of people would buy them for a cent an apple, then go to a buisness and sell them for 5 cents. They would use this money to get food for the day.
-Depression in Rural areas
*Farmers weren't making money off of their crops because the prices were really low. And they couldn't sell over seas.
*Since they couldn't take out loans a lot of farmers lost their farms.
* People in the country had an advantage over people in the cities because they actually had food they could eat, even though they destroyed it to try to help the prices go up.
*Neighbors helping neighbors.
*About 400,000 farms were lost. A lot of times it was because they moved to the cities. That was between 1929-1933.
*Hoover said "farmers have always been poor, so theres not a whole lot we can do about it."
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