1. What were the causes of the stock market crash of 1929 and the Great Depression?
Stock Market Crash
- The crash began on Black Thursday October 24th 1929
- It dropped 11% that day
- On black Monday Oct 28th fell another 13%
- lack of government regulation buying stocks on margin (buying on credit). Pooling you would buy a stock and when they were really high you would sell it, cheating people out of their money.
- that Tuesday the 29th the stock market took its final blow
- it fell another 11%
- 16 million shares were sold that day.
- by 1930 between 6 and 7 million people were unemployed
- unemployment meant fewer customers a decrease in customers caused further cutbacks in production
- These cutbacks in turn resulted in more unemployment and by 1932, 12 million people were out of work
Great Depression
- The stock market crash 1929 because everybody was un-equalizing, people lost their jobs and lost their money
- bank failures
- American Economic Policy/ Europe, smoot-Howley Tariff, helped protect American companies
- Drought conditions
2. What impact did the stock market crash and Great Depression have on the lives of people in the United States?
3. What did the United States government do to help alleviate the problems the Great Depression brought to our country?
(President Hoover- 31st pres born in Iowa. August 10th, 1874- October 20th, 1964. West Branch IA. Served as head of US Food Administration, Secretary of commerce. Blamed for Great Depression, didn't recognized the severity, his philosophy. RFC gave loans to banks, state and local govt's and business to create projects/jobs for people, gave states loans for emergency relief needs, stared under Hoover, not as successful as hoover had hoped, dissolved in 1946
Roosevelt-New Deal-Goals/1st and 2nd)-1st 1933-1934, 2nd 1935-1936, stabilize banks, clean up financial mess from 1928 crash, help farmers. Roosevelt plan to get the country in the right direction. create agencies to make jobs, recognized the rights of workers to form unions. Helped every state, town, and community. Inspired a civic, cultural, and economic renaissance. Built roads, highways bridges schools theaters, libraries, city halls, homes, parks post offices, and airports. The 3 r's: Relief, recovery, reform. 2nd new deal, still apart of original new deal, it just starts the second half of the new deal, improved use of national resources, security against old age, unemployment and illness, slum clearance.
unemployed - when Hoover was pres, unemployment went up. 8 agencies helping unemployment, built public buildings about 900,000 gave jobs buying materials, helped economy. Public works administration 1933-1939,, national industrial recovery act, large scale public works. Works progress admin. 1935-1941 coordinating public work schemes. Civilian conservation corps 1933-1941 sent men 18-25 years old to forest.
young people - Teenagers had to take care of the younger ones, the teenagers had to leave school and go to jobs, schools shut down because they didn't have any money, they had an act that would pay to keep the schools up so that the children would get educated. Most teens ran away and would start a new life. The CCC was about men who didn't have families and they would live in a place that helped them and fed them and gave them shelter. When the teens would run away, they would steal things just to get away and while they were chasing the trains; some of them would die or lose a limn.
factory workers - wagner act official name was the national labor relations act of 1935. I guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining
labor unions - an organization of workers, that tried to get better pay and hours. In 1933 there were only 3 million labor union members.
farmers - Cotton, corn, wheat, and dairy was paid to produce less, price had doubled in 3 years, crops were sloughed back. People were hungry and they weren't getting enough food. 2.5 million men left, income doubled for farmers, left many employed, some lost farms.
elderly - social security, money, Fiscal year = tax year, Age 65 or January 1st 1942, Old age assistance=payments to aged individuals, poorhouses. Per cementum = percents; 1/2 to $3,000+, 1/12 to $3,000-$45,000+. old age reserve account June 30, 1937. Retired almost retired savings are almost gone, dependence on family (child, elderly, then parents), children orphanages, elderly charity. Arizona and Hawaii were supportive, citizens and residents had to be there for 15 years. Hard work doesn't guarantee financial security, and most expected government to assist.
poor -Food; breadlines, soup kitchens, need from employment, operated- churches, charities, government.
homeowners - Home ownership rates fell and housing prices plummeted. Nation Housing Act (Capehart Act) created on June 28, 1934. Designed to stop bank foreclosures on family homes. Created the Federal Housing Administration (FHA) and the Federal Savings and Loan Insurance Corporation (FSLIC). FHA made housing and home mortgages more affordable. FSLIC insured deposits in savings and loans. USHA (United States Housing Authority) Designed to lend money to the states or communities for low-cost construction. HLC (Homeowners' Loan Corporation) Its purpose was to refinance homes.
artists/musicians - time of exploration. Artist were paid by the government to make art for government events. Hard time getting money. Federal Art Project was "The visual Arts Arm" of the Great Depression era. Came from the New Deal Works Progress Administration Project called Federal One. Went from August 29, 1935, until June 30, 1943. Notable artists include Grant Wood (American Gothic). Musicians - Federal Music Project. The government hired musicians, conductors, and composers to get out and have concerts, festivals, and have music lessons. The objectives of the FMP was to get people interested and get them happy.
Women/African-Americans - Only boys got educated. FERA (Federal Emergency Relief Administration) Eleanor Roosevelt supported FERA, brought families together and provided work and loans. WPA (Works Progress Administration). Women worked gardening and canning during the subbers, school luchrooms during the school year, 31 cents and hour. More than a thousand women were employed as housekeepers. Sponsors would provide money. Rent and utilities of sork sites, provide material like the library boos. Working conditions - Wages for working women in the 1930's was only $5 per week, they supported the family.
Native Americans -
Native Americans
banks
stock market
energy
4.) What long lasting impact did the Great Depression have on Shelby County, Iowa, the US and world?
US
Iowa
Shelby County
World
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