Causes of the stock market crash 1929-
Over speculation during the 1920s
overproduction of goods
Buying on margin
Uneven distribution of wealth
too much borrowing from banks
stock prices were grossly inflated, did not have real value
Federal Reserve increased interest rates
Lack of government.
Effects on STOCK MARKET- 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 spreads to europe and other parts of the world.
Causes of the Great Depression- New Deal programs start. makes the us gov. 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
Vicious Cycle of GD- Companies lose money, lay off people/ 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...
Breadlines and soup kitchens; first come first serve.
Sellings apples. or any type of common fruit!
Dust Bowl- Hurt agriculture in the central and south part of the country. Soil Erosion.
OKies- People who would pack up and move into the oklahomas..
McNary-Haugen bill---- In 1924, Senator Charles L. McNary of oregon and representative Gilbery N Haugen of Iowa. A federal farm board was to be created to purchase surplus farm production and pre-world war 1 prices. the surpluses were to be stored until domestic conditions improved or until a decision was made to offer them on world markets.
1928 pres. election
Herbert Hoover(R)- Iowa. Speech= was ironic about the poverty to be gone.
Dow Jones- DJIA- one of the several stock market indicators created by charles dow. Dow complied the indes as a way to gauge the performance of americas stock. Today the average consists of 30 of the largest and most widely held public companies.
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