Causes of the Stock Market Crash-1929
- over speculation during the 1920s
- overproduction of goods
- buying on margin
- uneven distribution of wealth
- to much borrowing from banks
- stock prices were grossly inflated, didn't have real value
- Federal Reserve increased interest rates
- lack of government regulation
Effects Of the Stock Marker Crash
- investors and business 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 spreads to Europe and other parts of the world
Causes of the Great Depression
- new deal programs start makes the US govt much larger
- deficit spending starts
- the new deal created 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 money so they lay people off
- employment rate goes up and less people buy goods as income had dropped
- companies profits fall so they have to lay more people off or close
- cycle repeats itself
McNary- Haugen Bill
- in early 1924 senator Charles L. McNary of Oregon and representative Gilbert N. Haugen of Iowa introduced a bill calling for the following:
- a federal farm board was to be created to purchase surplus farm production at pre world war 1 prices the surpluses were to be store until domestic conditions improves or until a decision was made to offer them on world markets
Hoovers Speech
- We in America today are nearer to the final triumph over poverty than ever before in the history of this land. we shall soon with the help of god be in sight of the day when poverty will be banished form this land
- Herbert Hoover in this acceptance speech June 1928
Dow Jones
- the dow jones industrial average is one of several stock marker indicators created by Chalres Dow
- Dow complied the index as a way to gauge the performance of AMericas stock market
- Today, the average consists of 30 of the largest and most widely held public companies in the US
Black Tuesday Oct 29
- stock market crashed
Hoover dam
- Boulder Dam located 34 miles from LAs Vegas is one of the engineering marvels of the world
- hoover dam is 726 feet high and 660 feet thick at its base
- the hoover dam project inculding the dam, the all american canal, the town of Boulder City, highways, railroads.
- Relief for the needy (for FDR platform)
- Economic Recovery
- Financial reform
FDR Brain Trust
- harry hopkins-social worker and the architect of much of the new deal
- henery morgenthau
- lousis lowe
- cordell hull
- frances perkins
- sam rosenman
- raymond moley
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