1. Causes of the Stock Market Crash
1.Buying on credit, buying in margin
2.Federal reserve raised intrest rates, so people stopped buying items and stocks, then started selling stocks
3.spectulators buy stock then a year later they would sell....stock watering- over value of stock prices
4.overproduction of goods
5.uneven distribution of wealth- rich got richer and the poor got poorer, people that wernt rich had massive debt so they quit buying things
6.too much borrowing from banks poeple were in debts
7.lack of government regulation- pooling-people would get together and buy a stock and they would get millions of dollars for that stock
- Effects
- investors and businesses lose millions $$$
- Thousands of banks fail-savings are wiped out
- Businesses cut production- lay off workers
- Unemployment rises- people quit spending money
- Great depression sets in
- Depression sets to europe and other countries
2. Causes of the Great Depression
1.Banks failed
2.Smoot-Hawley Tariff-
3.Unempolyment rate
4.stock market crash
5.overprodutcion of goods
6.Underconsumption of goods by consumers
7.Agricultural slump due to overproduction
8.High protective tariff policies of the 1920s
9.Taxes benefiting the rich- rich got richer and poor got poorer
- Effects
- New Deal programs start- makes the US gov't much larger
- Deficit spending starts
- The New Deal creates many organizations that are still around today- social security
- Fascist, military and communist dictators come to power throughout the world
Vicious Cycle of the Great Depression
- Companies lose $$ 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 itself
Plus one of these topics:
1. 1928 Election(466)
- Herbert Hoover won
- believed in the efficiance movement
- helped relief efforts
- he was trainde as and enginere
- he was a reblubican
- Hoover won because he went out to a couple democtratic state
- Al Smith was for prohibition and he was democrate
- he was a catholic and people were anti-catholic
2. Stock Market in the 1920's(466-468)
Mine
3. Story of the stock market crash-not the causes(467-469)
- Black Tuesday and Thursday
- 11% drop on thrusday
- friday a little rebound
- weekend people decided to sell on monday
- monday 30% drop in stock market
- tuesday was when the stock market really crashed
4. Banks and business' collapse(469)
- people would put money in the banks then the bank put their money in a stock to raise money prices
- Vicious Cycle
- buisness wouldn't get money >> lay off people, people tried to save money>>wouldn't buy goods
- 90,000 business went bankrupt
- over 11,000 banks closed
5. Effect stock market crash had on other countries(469-471)
- unemployment rates raised
- president said to raise tariffs and so other countries rose tariffs
6. Depression in the cities(472-473)
- people started to loose their jobs
- lost homes
- resturants were selling food cheap
- latin people were forced to go back to their origional countries
- people would walk around with their pockets out
- women would not stand in the bread line
7. Depression in the rural areas(473)
- Dust bowl effected farmers in the great plains
- farmers could grow own food and eat
- lost farms cause made too much food and lost money
8. Dust Bowl(474)
- dirty thrites
- children had to wear masks
- put wet sheets up to stop sand for coming in
- millions of acres of farm land became unusful
- 1933 38 dust storms
9. Men in the Streets(475)
- men would walk up and down the streets looking for jobs
- hobos-men that had to leave families cause they couldnt supply family well
10. Women struggle to survive(475-476)
- gardened
- stayed home with kids
- some had jobs
- wouldnt stand in bread lines-a lot died
11. Children suffer hardships(476)
- a lot left homes and turned in to hobos
- a lot went to find jobs but couldn't find jobs
- schools shut down
- sent everything thay had to their families
12. Social and psychological effects(477)
- the sucide rate rose a lot
- unemployment rate rose so kids had to take over parents tasks
- 3x as many people were admitted to mental hospitals
13. Hoover's background
- president at begining of depression
- people didn't like wat he was doing
- gave money to banks and thought it would turn into the trickle down theroy
- thought they shouldn;t give money to people
- he was the head of the food administration
- secretary of comerace
- went for president
14. Hoover's philosophy/Cautious steps(479)
- Trickle down theory
- Laissez faire
- rugged individualism
- people told other buisness owners that they shouldn't lay off people
- cautious steps killed him\
15. Boulder Dam(480)
- 1931-1936
- congress started to plan to build it in 1928
- 725 ft tall, a lot of concrete
- thousands of workers
- now called the hoover dam
- colorado river
16. Democrats win 1930 Congressional elections(480)
- republicans lost house completely
- democrats won
17. Hoover takes action(481)
- he tried to jump start the economy
- federal farm board would buy excess farm crops
- raise crop prices by buying surplusses
- established national credit corp.
- fedral home loan bank act-made it easy for farmers to keep homes and farms
- reconstruction finance corp.
18. Bonus Army(482-483)
- WWI vets were supposed to get a ceck sooner that 1945
- Hoover provided tents for them
- Congress says no, they get it in 1945
- they cleared people from protesting w/ gas
- gas huurt babies
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