At the beginning of history class today Mr. Bruns asked us to get out a piece of paper and we did a write to learn. We were asked to list five things that made the 1920s fun and exciting. After we finished our write to learn we talked about stock prices on the overhead and we talked about the vicious cycle of the great depression. In the 1930 the new deal was created to fix this negative cycle. Employment, Income, Consumption, and Production were the main topics in this cycle. After we discussed the cycle we began our class room discussion about the causes of the stock market crash and the great depression. (Our discussion) During our discussion we talked about the causes of the stock market crash. People had doubts and the stock market was built up on an unstable foundation. In late 1920s companies were over producing and people were not buying because they were in debt from buying on credit. People were also not buying because they had everything they needed, and the bankers were not creating loans as often. Federal Reserve kept people from buying by increasing interest rates. Confidence was a big thing in the 1920s but the Federal Reserve made people confidence go way down. Speculation effected the way people felt about consumtion. Class is now over and i don't think we got everything covered.
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