people were buying on margin and when banks failed all money was gone. there were record high stock values untill october. through 20s low intrest rate. people barrowed lots of money. stuff was cheap in 30s if you kept job and had money you lived good. intrest rates went up in1929 and caused people to not to barrow money. stock watering stock value went up even if company value went bad. lack of gov. regulation.
2. Causes of the Great Depression
thousands of banks failed because bank invested in stock market. banks lost money people tryed to take out and they closed down. buisnesses cut people off because cant sell goods and was over production of goods. this creates vishus sycle. people dont spend money. high tarrifs hurt worldwide trade. Hoover raises tarrifs more and takes away trade. unemployment rate made things worse. The worst of all though was the stock market crash. Banks that didnt fail would not lend money and there were high tarrif rates.
Effects of great depression first time we went in dept.
1. 1928 Election(466)
coolage wasnt going to run again hoover wins election. won because of reputation head of food administraion in ww1. He was a humanitarian. Was born in iowa and trained as engineer.
2. Stock Market in the 1920's(466-468)
stock is investment in a company. investment is stock exchange. people wanted to buy stock/stock price was increasing. dowe jones investment in 30 largest companys in us. dowe jones is doing good most time all stocks doing good. sec security and exchange commity.
3. Story of the stock market crash-not the causes(467-469
Days leadin up to crash was a 11% drop then 30%. Black thursday was 11% drop then monday was a 30% drop tuseday was worst drop. charley michel trys to get market back up and becomes poor investing his money in the failing market.
4. Banks and business' collapse(469)
people put money in banks. Banks put in stock market, market failed banks lost money and there was nothing there. aprox 11 thousand banks failed. 90 thousand buisnesses failed. unimployment 12 to 15 million out of job. about 25% uniployment rate.
5. Effect stock market crash had on other countries(469-471)
Tarrif caused world trade to decrease in half. Idea was to buy american goods. created hitlers rise because of hard times around the world. high unimploymen rate around the world.
6. Depression in the cities(472-473)
couldnt buy food or homes. africans were paid less than whites. latins were forced to leave because we thought only americans should get jobs in america. went to hoovervilles because couldnt afford house. breadlines were set up to hand out bread to the needy. Hoover said was not governments job to pay for food for peeple.
7. Depression in the rural areas(473)
could grow and eat food. lots of farmers lost farms. farmers made to much food so were loosing money so trying to destroy crops and killing hogs to make demand more.
8. Dust Bowl(474)
Called the dirty thirtys. Would put wet towles around windows. Millions of acrers of land become unusable in the plains. Caused by high winds and drought.
9. Men in the Streets(475)
Men would go up and down street looking for jobs. Hobos had there own language.
10. Women struggle to survive(475-476)
Most stayed home with kids. The ones who got jobs were paid less. women wouldnt stand in bread lines they were to ashamed.
11. Children suffer hardships(476
Alot of kids left homes to find jobs were called wild boys. Most couldnt find jobs. 2,600 Schools shut down. What ever mony was made sent back to family.
12. Social and psychological effects
People had little money so sewiside rate rose 30% and 3 times as many were admited to hospitals for being crazy/ mental issues.
13. Hoover's background
Was president at beging of depression. Spent 2 million bailing banks out. Thought there sould be less government involvment. thought gov. shouldnt hand out money. went to collage to become engineer. durrign ww1 helped with relef efforts in belgium. Conserved food in us.
14. Hoover's philosophy/Cautious steps(479)
thought could make more money but that would cause inflation. Told people everything would be fine. Trickle down theory, Lassez faire, and Ruged Indivitalism. Trickle theory tax cuts to big buisnesses this will provide better wages, more jobs, and better jobs for lower class. Lassez fair french word for left alone it kept gov. out of buisnesses. Rugged indiviualism people need to work for themselves.15. Boulder Dam(480)was built to create jobs. thousands of people were hired about 100 died. built because thought would pay for itself. Hoover didnt belive in fiscally spending. Meaning didnt spend more than he took in.16. Democrats win 1930 Congressional elections(480)Said we are closer to the day where there will be no poverty. Republicans lost because was in economic downfall. Democrats won easily becuase wanted change.17. Hoover takes action(481)18. Bonus Army(482-483)Ventrins march in dc to pass bill to get bonus check early. Called bonus expedition act. President welcomed them but wasnt happy they were there. Congress refuses bill. Most left few stay and become more violent. Military comes in and uses tear gas to clear out. Hurt Hoovers appearance.
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