Today we are getting our New Deal projects. Mine is on Public Works Administration and Federal housing administration.We are also talking about our last week's blogs.Pooling; The rich people would buy stock and put advertizing in the newspapers. Then the common people would want to buy the stock. THe rich people would then raise the price on their stock to make more money.The Thursday prior to black tuesday; The stock prices are starting to drop. The rich people were still buying stock. On black tuesday, people were trying to sell their stock. That made the prices of the stock go down. The rich stock people bought the stock to raise the prices. Banks closed down, businesses closed down.Causes of great depression; People buying on margine and credit. Wealth is unequally distrivuted among the population. Many people go into debt on installment plans. Old and decaying industrial base makes US industry less competitive. Industry and agriculture overproduce. Government pursues unsuccessful economic policies; tariff policy; made other country put high tariff on their stuff because ours was so high. Stock market crash leads to financial panic.Effects; People suffer widespread unemployment, hunger, poverty, and homelessness. industrial and farm production falls. world economic crisis develops. Democrats win victory in 1932. Roosevelt initiates the New Deal.
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