Today we continued blog discussions.
Banks and Businesses Collapse
9,000 banks failed throughout the Great Depression.. 11,000 of 25,000
People were afraid so they took out money and then bank didn't have money to give out
Banks invested your money in stock markets.. lost a lot of money
People couldn't pay loans back anyways.. banks just didn't have enough money to pay everyone back their money
People weren't buying goods
Higher protective tariff so that people will buy American goods over foreign goods because cheaper.. high protective tariff meant that the main cause of Great Depression.. couldn't export either
Hawley-Smoot Tariff: the highest protective tariff in history, described above
Businesses failed..25% of population unemployed..50% in poverty areas
Shared time for working
Effects Stock Market Had On Other Countries
US was not the only country affected by the Great Depression
Countries in Europe were suffering from war debts
We couldn't export to other countries b/c of high tariff
Nazi and Communist parties in Germany are building
Hitler promises things and comes to power in 1923.. promises jobs and follows through
Japan invades China for resources.. couldn't trade and get anything so took drastic measures
World was changing.. times were tough and looked to leaders that would make the change
Depression in the Cities
Farmers ran out of money so moved to cities
People couldn't afford rent.. lived on streets
Couldn't afford food.. went to soup kitchens and bread lines
Hoovervilles, hoover blankets, hoover hogs, hoover flags = making fun of Hoover
Men left families looking for jobs and brought home the bread "bacon"
Federal government did not believe in helping the situation right now.. even though he was a Humanitarian
Hoover believed that churches and Red Cross should help out though
Hoboes hopped freight trains.. moved from city to city looking for jobs
Street venders-got banned because of public neussiance
In the Countryside (Rural Areas)
Rural areas had food while cities did not
Farmers had more food than needed but weren't making any money
Farmers did not do well in the 1920s because of overproduction-supply and demand
Stayed away from communism
400,000 farms were closed by banks in the first 3 years
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