Study for test-Monday
1. What were the causes of the stockmarket crash and GD?
Causes SMC
- over speculation during the 1920's-stocks weren't worth as much as they were priced
- 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
- Fed Reserve increased interest rates
- Lack of government regulation
causes GD
- overproduction of goods-companies weren't making any money
- under consumption of goods by consumers
- Agricultural slump due to overproduction
- high protective tariff plocices
- Taxes benefit the rich
- Stock market crash
2. What impact did the SMC and GD have on the lives of people in the US?
Stock Market
- People lost a lot of money
- Unemployment rises
- Businesses lay off workers
- Banks fail
- Depression sets in and spreads to other parts of the world
GD
- New deal programs made the US gov't much larger
- Deficit spending starts-spend more than we make
- Some people from that time don't trust banks today
3. What did the US gov't do to help alleviate the problems of the GD brought to our country?
4. What long lasting impact did the GD have on the US and the world?
- New deal programs made the US gov't much larger
- Deficit spending starts-spend more than we make
- The New Deal creates many organizations that are still around today- social security
- Military and Communist dictators came to power throughout the world
- Caused Japan to invade China-people needed resources
- Radio
- Electonics-first washer, first oven, fridge,radio
- Sports-took peoples mids off of the depression
Vicious Cycle of the GD-
- Companies lose $$ so they lay people off
- Unemployment rates go off and less people buy goods as income drops
- Companies profits fall so they have to lay more people off or close
- Cycle repeats
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