Wednesday 12.11

[3Julie]

quiz on friday. partner is hannah. know how to define it and effects. causes of stock market crash, effects of stock market crash, causes of Great Depression, effects of Great Depression, and the vicious cycle of the Great Depression

1. Causes of the Stock Market Crash

1. Buying on credit, buying in margin
2. Federal reserve raised intrest rates, so people stopped buying items and stocks, then started selling stocks
3. spectulators buy stock then a year later they would sell....stock watering- over value of stock prices
4. overproduction of goods
5. uneven distribution of wealth- rich got richer and the poor got poorer, people that wernt rich had massive debt so they quit buying things
6. too much borrowing from banks poeple were in debts
7.  lack of government regulation- pooling-people would get together and buy a stock and they would get millions of dollars for that stock

1. Effects of the Stock Market Crash

    1. Investors and businesses lose millions of money

    2. Thousands of banks fail-savings are wiped out

    3. Businesses cut production-lay off workers

    4. Unemployment rises- people quit spending money

    5. Great depression sets in

    6. Depression spreads to Europe and other parts of the world

2. Causes of the Great Depression

1. Banks failed
2. Smoot-Hawley Tariff-
3. Unempolyment rate
4. stock market crash
5. overprodutcion of goods
6. Underconsumption of goods by consumers
7. Agricultural slump due to overproduction
8. High protective tariff policies of the 1920s
9. Taxes benefiting the rich- rich got richer and poor got poorer

2. Effects of the Great Depression

    1. New Deal programs start-make US gov't much larger- started by Franklin Roosevelt. Spent billions of dollars

     2. Deficit spending starts- gov't spent more money than it earned

     3. The New Deal creates many organizations that are still around today - Social Security System

     4. Fascist (Nazis), military and communist dictators come to power throughout the world. Hitler came to power. In 1927 Japan outlawed war (Kellogg-Brand Act)

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)

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)

6. Depression in the cities(472-473)

7. Depression in the rural areas(473)

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)