NEW DEAL PROJECT: MY TOPIC:
Business/Bank Assistance and Reform:
Emergency Banking Relief Act(Bank Holiday)(EBRA) and
Federal Securities Act(FSA)-
Each student will be given several topics to research and present to the class via Powerpoint. For your Alphabet Soup Organization, please include the following information:
-title slide with basic info(year passed, etc)
-basic definition
-what it specifically did(give examples)
-was it successful overall(explain)
-is it still around today(if so, how has it changed--if not, when did it end and why)
For “Other Topics”, just explain the topic in detail.
1. Causes of the Stock Market Crash
- Buying on credit, buying in margin
- Federal reserve raised intrest rates, so people stopped buying items and stocks, then started selling stocks
- spectulators buy stock then a year later they would sell....stock watering- over value of stock prices
- overproduction of goods
- uneven distribution of wealth- rich got richer and the poor got poorer, people that wernt rich had massive debt so they quit buying things
- too much borrowing from banks poeple were in debts
- lack of government regulation- pooling-people would get together and buy a stock and they would get millions of dollars for that stock
1. Investors and businesses lose millions of money
2. Causes of the Great Depression
- Banks failed
- Smoot-Hawley Tariff-
- Unempolyment rate
- stock market crash
- overprodutcion of goods
- Underconsumption of goods by consumers
- Agricultural slump due to overproduction
- High protective tariff policies of the 1920s
- Taxes benefiting the rich- rich got richer and poor got poorer
Vicious Cycle of the Great Depression
-companies lose money so they lay people off
-unemployment rate goes up and less peopole buy good as income has dropped
-companies porfits fall so they have to lay more people off or close
-cycle repeats itself
Plus one of these topics:
1. 1928 Election(466)
Republic- Herbert Hoover (he won) his national reputation got him his landslide victory. Was head of the food administration of WWI. Helped relief efforts in Belgium after they were attacked by Germany in WWI. But when he was president it seemed like he didn't care about the people. Was born in Iowa. He was trained as an engineer. and he won over Democratic states.
Democratic- Al Smith. He got vice president. was governor of New York for 3 years before election. Had more political experience. He was against prohibition(he wanted the ban of alcohol) (that hurt him) He was a democrat so that hurt him because we had Republican presidents for the last 2 terms and it was the roaring 20's and they thought Republican's were God-like. He was Catholic (that hurt him too) (the people were afraid that the Pope would run the country, not the president).
2. Stock Market in the 1920's(466-468)
a stock is an investment in a company(buy a part of the company. Make money off of the company)
stock market- buy and sell stocks
Difference between stock market now and during the 20's- more rules and regulations today
People were buying stocks for cheap and then selling them at high prices, which led to inflation.
People wanted more stock to make more money. The price of stocks were increasing. The Dow Jones(A stock that's invested in the 30 largest companies) If the Dow Jones is doing good, then the companies are doing good, if the Dow Jones is doing bad, most companies are doing bad. Indicator how the stock market is doing
3. Story of the stock market crash-not the causes(467-469)
in march 1929, there was a drop in the stock market. Thursday drop in stock market. Friday it rebounds. (around oct.25.) monday was a 30% drop. Black Tuesday was 2nd worst dropping in stocks.
4. Banks and business' collapse(469)
People put their money into banks without permission to get money for stocks and then the banks started to fail. People tried to get their money out as fast as they could. They panicked. Banks lost money because they gave out too many loans so they had to shut down and people lost their money. Businesses didn't get money because people weren't buying things so people got laid off, they tried to save their money so they didn't buy goods so businesses lost more money.. Vicious cycle. In 1929, the output of the goods from businesses dropped 54%. 90,000 businesses went bankrupt. Unemployment rate went to 23-25%.
5. Effect stock market crash had on other countries(469-471)
unemployment rates raise
president said to raise tariffs and so other countries rose tariffs
Caused the World Trade Center to cut in half. Didn't buy goods from other countries.
Europe brought about dictators and caused Hitler to rise.
6. Depression in the cities(472-473)
People started to lose their jobs so they started to lose their homes too and lived in the streets. THey didn't have enough money for food so restaurants started selling really cheap food or free food. Soup kitchens were made. Farmers were destroying food and people in the cities didn't have food. Hoover blankets were newspaper used as blankets. (Hoovervilles cuz they were blaming their problem on Hoover.)
Breadlines were for people that could go stand in lines for bread. Women didn't stand in the breadlines because they were too ashamed to admit that they needed help. It was the man's responsibility to bring home the bread. The federal gov't did not finance this because they didn't think they should just hand out money to people.
blacks and latinos got paid less cuz of race. Latinos(ppl from central america) were sent back to where they came from even if they were born here.
7. Depression in the rural areas(473)
About 400,00 farms were lost in 3 years. They had the advantage of having food. They made too much food so they were losing money. They started destroying farms, killing hogs, spilling milk that way overproduction would go down so people would start buying food again.
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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