Absent - I'll get notes from someone later.
Ch. 14 Test Topics:
-- Causes of the Stock Market Crash
-overspeculation during the 1920's.
-lead to high demand
-prices of stocks were inflated
-stocks weren't worth what they were said to be worth
-speculators are people that look for a quick buck and are in it for a short time
-buying on credit (buying on margin)
-the process of buying stocks on credit.
-problem: brought a lot of people into the stock market
-price/demand of stock goes up and their inflated. (not actual value)
-rich people were getting richer
-poor people were getting poorer
-overproduction of goods
-compalnies making tons of product
-nobody was buying them
-the weren't making money
-stock prices were still skyrocketing
-they crashed on Black Tuesday
-too much borrowing from banks
-easy for people to borrow
-low interest rate
-people borrowed money to buy stocks
-price of stocks went up due to demand
-Stock oprices were grossly inflated, ddidn't have real value
-federal reserve increased interest rates
-fedral reserve looked and realized that the stock markets were dangerous
-increased interest rates
-people couldn't take out loans anymore
-lack of government regulation
-no rules regulating the stock market
-called "pooling"
-caused demand to rise quickly
EFFECTS
-The great depression
-Depression spreads to Europe and other parts of the world (the world is interependant.)
-banks closed
-people lost a lot/all of their money
-people lost jobs so they couldn't buy anything
-businesses lost money since people couldn't buy anymore
--Causes of the Great Depression (5)
*cycle of the depression: conpanies lay off workers, more people with less $ to spend, companies lose $.
(fixed if you can get it to go in the opposite direction.)
-over production of goods
-companies were making too many prducts that they weren't selling
-had to lay people off eventually
-underconsumption of goods by consumers
-people weren't buying things
-didn't have money because they were in debt because of buying too much in the 20's
-Agricultural slump due to overproduction
-farmers stuggled
-didn't have a boom like all other businesses
-high protective tariff polocies of the 1920's
-TARIFF-tax on foreign goods
-influenced people to buy American goods because of tariff (didn't wanna pay extra)
-was almsot bad for American business because the other countries did that to us
-Taxes benefiting the rich-rich got richer, poor got poorer
-people were in debt
-couldn't buy anything
-made it so more of the tax burden was on middle/lower class and the rich didn't have as much tax.
-made it tougher for middle/lower class to buy anything
-got layed off
-stock market crash
-fueled the Great Depression
EFFECTS
-New Deal - programs start - make the US gov't much larger
-Deficit spending starts
.spending more then you take in
.started doing this in the 30's
-The New Deal creates many organizations that are still around today
.Social Security taxes
.security exchange comission
-Fascist, millitary and communist dictators come to power throughout the world
Vicious Cycle of the GD
-companies lose $ so they lay people off
-undmployment 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
1. 1928 Election(466)
Rebublicans (3)
-after convention, Hoover was in the lead
-Republicans were the presidents through the 1920's.
Democrat (3)
-Al Smith
-was against Prohibition, wanted people to be drinking again
-the "in thing" was to be for prohibition.
-was Catholic
-Hoover won. He was soft spoken and very optomistic.
2. Stock Market in the 1920's(466-468)
-market where people buy stocks
-people do that to make money but some lose money
-make money by dividens(if a company does good, you "own" part of it if you invested stocks in them.)
-Daw Jones is the top 30 publicaly owned companies (AT&T, Coka-cola, GM, Home Depot, IBM, American Express, McDonalds, Walmart)
-stock prices were inflated
3. Story of the stock market crash-not the causes(467-469)
-In March 1929 there was a day that the stocks started doing bad
-Charlie Mitchel saved the day by offering low interest rates so people could invest in stocks
-it helped the stocks - he saved the day
-Charlie and Mitchel tried to "save the day" again and so did other banks
-Believed they could pull the stock markets back up
-Money the 28th of October, they started dropping
-They crashed on October 29th, Black Tuesday
4. Banks and business' collapse(469)
-After the crash , people went into the banks to get all their money
-9,000-11,000 of the 25,000 banks failed during the 30's.
-unemployment rose from 3-25% in 1929
-4,000 of the 9,000 banks failed in 1933 alone
-Most things shut down in the first few years
-Businesses and things closed, which would explain the unemployment rate.
5. Effect stock market crash had on other countries(469-471)
-First country affected was England because we were the main country to traid with them
-Then started backing their money with gold
-South Africa was bad because they were based on gold
-It affected Germany after WW1 because we kept giving them loans but then they fell through
-Dictators started taking over
6. Depression in the cities(472-473)
)-Farmer's had to move into cities to find jobs since their farms were forclosed on. Extended families lived together and it was very crowded. "Hoovervilles" were formed because people were so poor. They were called this because they blamed president Hoover for all of it.
Breadlines- hand outs of food; president Hoover did not believe in breadlines because he believed that people were lazy. Only men stood in these breadlines. Reselling of things like apples for a few cents more expensive than they bought them for
7. Depression in the rural areas(473)
- Prices for crops were really low so farmers didn't make any money which caused banks to forclose on their farms and houses
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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