1. What were the causes of the stock market crash of 1929
Stock Market- Buying part of a company you can gain money or loose money depending on the company that you buy stock in.
Causes
- buying on margin,- Loans kind of
- Overproduction and under-consumption of Goods,- business kept producing goods that nobody needed, only wealthy were only people buying, stock went down
- Banks Investing,- Took people's money, invested the money in the market without people knowing, Started losing money in market, ended up closing
- Stock pools and Watered Stock- Wealthy people would by all for a company, Cause the price of stack to rise, Sell stock at very high prices, Stock value was a lie, people were buying stock thinking that it would benefit them but really hurt them
- Unrealistic View of the Market- No one believed the stock would ever fall, "Over Exuberance and False Expectations", Stock prices became "divorced" from the real potential
- Weak Banking system- US had over 30,000 banks, Prone to going bankrupt, High Bank failure rate, People lost money
- Government had no rules and regulation about the stock market
- Federal Reserve s increased interest rates- their were too many people borrowing money so they raised interest rates and the economy crashed
What were the causes of the Great Depression?
2. What impact did the stock market crash and Great Depression have on the lives of people in the United States?
3. What did the United States government do to help alleviate the problems the Great Depression brought to our country?
President Hoover
Roosevelt-New Deal(Goals/1st and 2nd)
How did the New Deal impact the following: unemployed, young people, factory workers/labor unions, farmers, elderly/poor, homeowners, artists/musicians, women/African-American/Native Americans, banks, stock market, energy
4. What long lasting impact did the Great Depression have on Shelby County, Iowa, the US and world?
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