-People were in debt from buying on credit
-Companies were losing money b/c people didn't have money to purchase items
-People were buying stock on margin-buying stocks on credit
-Stock prices grossly inflated
-over production of goods- companies weren't making money
-uneven distrubution of wealth-rich got richer-poor went into debt
-too much borrowing from banks
-Federal reserve increased interest rates-wanted people to stop buying-killed economy
-Lack of government regulation
Efects:
-Investors and businesses lose millions $$$
-Thousands of banks fail-savings are wiped out
-businesses cut production-lay off workers-unemployment rises-people quit spending money
-Great Depression sets in
-Depression spreads to Europe and other parts of the world
--Causes of the Great Depression
-Overproduction of goods
-Underconsumption of goods by consumers-people weren't buying
-Agricultural slump due to overproduction-too many crops-prices went up
-High protective tariff policies of the 1920's
-Taxes benefiting the rich-rich got richer,poor got poorer
-Stock marker crash
Effects:
-New Deal programs start-make the US gov't much larger
-Deflict spendign starts
-The New Deal creates many organizations that are still around today-social security
-Facist, military and communist dictators come to power throughout the world
Vicious Cycle of Depression
-Companies lose $$ 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
1. 1928 Election(466)
--Herbert Hoover-Republican
-prohibition
-economic
-better on radio
-Won Election*
--Al Smith-Democrat
-get rid of prohibition-hurt election
-better speaker
-catholic-people afraid of country turning into catholicism
2. Stock Market in the 1920's(466-468)
3. Story of the stock market crash-not the causes(467-469)
4. Banks and business' collapse(469)
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)
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