Causes of the stock market crash-1929
- Over speculation during the 1920’s
- 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 regulation
Effects
- Investors and businesses loss millions
- Thousands of banks fail-savings are wiped out
- Business cut production-lay workers off
- Unemployment rises- people-quit spending money
Causes (know 4)
- Under consumption of goods by consumers
- Agricultural slump due to overproduction
- High protective tariff policies of the 1920’s
- Taxes benefiting the rich-rich got richer, poor got poorer
- Stock market crash
Effects of Great Depression
- New deal programs start- makes the US gov’t much larger
- Deficit spending starts
- New Deal creates many organizations that are still around today-social security
- Fascist, military and communist dictators come to power throughout the world
Vicious Cycle of the Great Depression
- Companies lose $$ so they lay people off
- 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
Hoover’s Ironic Speech
- “We in America today are nearer to the final triumph over poverty than ever before in the history of this land… We shall soon with the help of God be in sight of the day when poverty will be banished from the land.”
Boulder(Hoover) Dam
- Boulder Dam, located 34 miles from Las Vegas, is one of the engineering marvels of the world
- Hoover Dam is 726 feet high and 660 feet thick at its base
- Including the dam , the All-American Canal, to town of Boulder City, highways, city
The new deal
- Relief, Reform, Recovery
- Relief for he needy
- Economic recovery
- Financial reform
- FDR's Brain Trust
- Harry Hopkins- social worker
- Henry Morgenthau
- Louis Lowe
- Cordell Hull
- Frances Perkins- Sec. of labor and first female in the cabinent
- Sam Rosenman
- Raymond Moley
- Rexford Tugwell
- Why was it challenged?
- Created a very powerful president that led congress, this was a violation of checks and balances.
- It was a radical departure from Laissez Faire ideals. Created "big government"
- Some acts appeared interfering and at worst unconstitutional.
- Heavy Debt burden- the united states was engaged in deficit spending and this was unhealthy for the economy in the long run.
New Deal vs. 2nd Deal
- Restore nations hope
- Help banks and stock market
- Provide jobs and relief for poor
- Plan and regulate the economy
- Pass new labor laws
Reconstruction Finance Corporation-1932
- Gave loans to banks, state and local govt's, and business' to create projects/jobs for people
- Started under Hoover
- Dissovleved after 1942(World War II)
****Civilian Conservation Corps-1933
- Members lived in camps, wore uniforms, and lived under military disipline
- 18-25 year old guys
- Planted trees, fought forest fires, stopped soil erosion
Federal Emergency Relief Act
- Direct relief measures
- provide work for emplyable people
Public Works Administration
- Built schools and hospitals
- Unemployed people who it helped
Civil Works Administration
- Used to create jobs for millions of unemployed
Works Progress Administration
- Largest and most comprehensive New Deal agency
- Created work construction projects
- roads, bridges, buildings, airport runways
- Federal Art project, Federal Music project, Federal Theater project, Federal Writers' project
- Camp David
- Presidents vacation spot
- Golden gate bridge
National Youth Administration
- Pushed by Eleanor Roosevelt
- Provided work study for college kids so they could stay in school
- Included Women
- \
Emergency Banking Relief Act
- Passed in response to the thousands of banks that closed down
- Reorganize banks and then reopen them
Federal Securities Act
- Made the stock market a safer place for people to invest their money
- Required the investors to receive info regarding securities being offered for public sale
- Prohibited frod in the stock
National Industrial Recovery Act
- Guaranteed people to work in factorys
- Tried to get companies to treat their workers fairly
Securities and Exchange commission
- regulates the stock market therefor making the market more secure and safer for peoples money
Agricultural Adjustment Act
- Payed farmers to plant less and kill of unnecessary animals
- Cities were upset because they weren't getting food
Soil Conservation and Domestic Allotment Act
- Government payed farmers to reduce production to conserve soil and prevent erosion
Tennessee Valley Authority
- Dams created to generate electric power and control floods in a seven state region around the Tennessee River Valley
Rural Electrification Administration
- Provided farms with electricity
Farm Security Administration
- Granted small farmers and tenant farmers money to purchase farms
- Farmers bought tractors with money from the AAA thus forcing tenant farmers off the land
Home Owner's Loan Corporation
- Loward the 50% loan down to 10%
- Had to have house payed off within 5-7 years at an interest rate of 6-8 percent.
- It moved this to 30 years
Federal Housing Administration
- insured loans made by banks and other private lenders for home building and home buying
- to improve housing standards and conditions and to proved an adequate home financing system
Unites States Housing Authority
- Designed to lend money to the states or communities for low-cost home construction
- Designed for low -income and homeless people
National Labor Relations Act/Board
- conducts elections for unions
- stresses collective bargaining
- investigates and fixes unfair labor practices
Fair Labor Standards Act
- Established minimum wage
- 40 hour work week
- Guaranteed time and a half for overtime in certain jobs
- prohibited most child labor
Social Security
- Helped elders get money
Indian Reorganization Act
- Abolished the Dawes Act and allowed Natives to govern themselves on a tribal basis
- Allowed Natives to manage and keep their own land
- Included provisions to help create job opportunities on Indian Reservations. This has led to many casinos on Indian Reservations.
What were the cause of the Stock Market Crash and Great Depression?
What impact did the SMC and GD have on the lives of people in us?
What did the us govt do to help alleviate the problems the GD brought to our country?
What long lasting impact did the GD have on the us and the world?
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