1. Causes of the Stock Market Crash
( basically everything was bought
-buying on margins- borrowing money from brokers to buy stocks (buying stocks on credit), this brought people to the stocks
-over speculation during the 1920's- playing and selling quickly to make fast money, not in for the long term,bought stocks when low prices sold when prices were high
-over production of goods- companies were making to much and not making money because people were borrowing money from banks
-uneven distribution of wealth-rich got richer, and poor got poorer
-too much borrowing from the banks- way to easy to borrow with low interest anyone could get credit
-stock prices were grossly inflated, did not have real value
-federal reserve increased interest rates- effect of this was people stopped spending money
-lack of government regulation- bought stocks prices high when newspapers advertised when new company came into the stock market, because the demand was high.
*effects
-investors and businesses lose millions of dollars
-thousands of banks failing-savings are wiped out
-businesses cut production-lay off workers
-unemployment rates raised
2. Causes of the Great Depression
-vicious cycle of companies=companies lose money -> companies lay off workers-> unemployment rates goes up (more people with less money to spend)-> cycle repeats itself
-over production of goods
-under consumption of of goods by consumers
-agriculture slump due to over production-farmers grew to much crop and couldn't buy more seed for the next's year crop
-high protective tariff policies of the 1920's- keeps the foreign countries' products out of
-taxes benefiting the rich- rich got richer and poor got poorer, people in debt couldn't buy any thing, benefited rich by giving rich a break and higher taxes on middle and lower classes
-stock market crash
*effects
-new deal programs start- makes the U.S. government much larger
-deficit spending starts- spending more then they make
-the new deal creates many organizations that are still around today- social security
-fascist, military, and communist dictators come to power throughout the world- was happening was effecting all around the world
1. 1928 Election(466)
-hoover, frank lader, charles curtis. Hoover won by a large majority. Hoover would not win in this time beacaue he was a soft person. becasue he was a go with the flow peson, like god wil help me. Hoover was republican-they were in power in the 20's people thhought it would keep going, Hoover was againts prohibition, smith was catholic, only president to be other the JFK. Country was based on anit catholic that why we left europe.
-Herbert Hoover (republicans)- leading for the republican party, won the presidency, soft spoken lets things happen the way they did
-Al Smith(democratic) - leading for democratic party, like to talk, 3 main reasons he lost election
--republicans always presidents
--repeal prohibition
--Catholics never became presidents
2. Stock Market in the 1920's(466-468)
-stock market- place to make or lose(unintentionally) money
-Dow Jones Industry-stock market indicator of the 30 most higher companies
-prices where going up
-men go into stocks to make money, you make money by divedends. You can buy and sell stocks. If you buy a stock at a low price you could always sell it for money. Dow jones- shows how much the market has gone or up or down. It is an economic indicator. How our stocks an economy is doing.
3. Story of the stock market crash-not the causes(467-469)
- people where buying on credit and as the stock market became more popular the demand increased and price went up, the high the demand the more people bought on credit, everything was become more based on buying on credit.
the roaring 20's since every one was buying on credit, and all the stock were based on credit. Every one wanted to be a part of it so people started buying a margin. March 19, 1929 the day were the stocks droped sharply. Bank owner was loaning loans with low intrest rates, and he invested most of his money in stocks. He saved the day! the stocks starting going up and up, Charlie Mitchell tries it againg on oct 24 when the stocks going down sharply, by doing the some thing. Monday stocks fall signaficalntly. On tuesday the reall mess happens.
4. Banks and business' collapse(469)
-9,000 to 11,000 out of 25,000 banks failed because people came in to remove their money because of the crash
-90,000 businesses where closed because of the crash
-Uneploy ment rose in 3-25% ...90,000 businesses failed around the country
5. Effect stock market crash had on other countries(469-471)
-England- had unemployment issues
-South Africa- crashed because England stopped backing up money with gold
-Germany- stopped loaning them money, their economy crashed
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6. Depression in the cities(472-473)
7. Depression in the rural areas(473)
8. Dust Bowl(474)
9. Men in the Streets(475)
10. Women struggle to survive(475-476)
11. Children suffer hardships(476)
12. Social and psychological effects(477)
13. Hoover's background
14. Hoover's philosophy/Cautious steps(479)
15. Boulder Dam(480)
16. Democrats win 1930 Congressional elections(480)
17. Hoover takes action(481)
18. Bonus Army(482-483
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