Today we started with a pop quiz. We had to list five things that we remember about the movie from yesterday. Bruns showed us a graph of the stock market and in about 1927 the stock market started shooting up. Then it crashed. A stock is an investment in a company. When companies do good the stocks go up, but when businesses do bad then stocks go down. WWII is what got us out of the Great Depression. It took about five or six years to recover from that. The unemployment rate was 25% in 1933. There was a very terrible cycle that was part of the depression. Consumpion------Production-------Employment-----Income-----Consumption---and so on...Consumption is what people buy. When they dont have much money they cut out non-essentials. Then companies wouldnt make money so they had to lay people off. Then people had less money so they would stop buying more and then the cycle would just keep going and going. The way to get out of this cycle is to spend money. If you dont spend money you will never get out of the cycle. Obama made a stimulus package to try and bail us out. Back in the Great Depression they made a New Deal to try and bail them out.Then we started talking about our blogs.Causes of Stock Market Crash-1.Companies were making to much and people were not buying things because they were in debt.2.Federal Reserve System.3.Inflation-Deflation4.rich got richer, poor got a little more spending money, but then they went into debt.5.Speculation--is to kind of guess or assume. The stock was good and they thought it was going to keep going up and not fall. very risky.I think that the economy now should be pretty good because I spend a lot of money. Ha! and my parents spend a lot of money on me :)
Comments