Today in class we talked about the Stock Market Crash and the Great Depression.Discussion:Coolidge was the president at first but as things got better Hoover had his term. He was from Iowa. If the Down Jones is going up generally all stocks are doing well. If it goes down most stocks are doing poorly. Building homes can be a way to tell if the economy is doing well. If people aren’t building or buying homes the economy is doing poorly. World War II got us out of the Great Depression.Gross Domestic Product is the total amount of goods and services produced in a country per year also known as the GDP. Right now our country is in a recession. The “New Deal Cycle”: 1.Consumption- buying products. During a hard time people are buying less. 2. Income- people have less income so they buy less. 3. Employment- because people aren’t buying products companies aren’t making money so they have to cut employees. 4. Production - When people aren’t buying not as many products are being produce.When George W. Bush the recent president was in the office he tried to fix this cycle by giving everyone an eight-hundred dollar check from the government. Then people will buy more. They now have money to spend. The businesses will be making more money so they will hire more employees. Then they can produce more goods.- People weren’t buying anymore because they either had already bought the new products. They only needed one of each product.- They would run to the banks to withdraw their money before they crashed.- Increased interest rates, so less people would borrow less money- Then everyone sold their stocks and it took a huge down fall
Comments