- Forum post leaders.
Stock market key terms:
-Consumerism: philosophy to get people to spend money (ads: make you think you need something and then make you buy it). Good for the economy.
- Buying on credit: buy now, pay later. You don't have the money now you pay back monthly usually.
- Republican Philosophy of Harding:
- Coolidge:
- Hoover:
- Laissez-faire: gov should stay out of businesses
- Rugged individualism: The belief that all individuals, or nearly all individuals, can succeed on their own and that government help for people should be minimal.
It refers to the idea that each individual should be able to help themselves out, and that the government does not need to involve itself in people's economic lives nor in national economics in general- It is often associated with Social Darwinism or an "up-by-the-bootstraps" philosophy.
- trickle down theory: taxes break to the riches, they will expend and create new jobs. (long time results)
- Stock: if you buy stock, you are buying a part of a company
- Stock market: place where you can buy and sell stocks
- Dow Jones Industrial Average: average value of the stock market. one of the biggest company in the us.
- Buying on margin: buying stocks on credit
- Watered stock: over valued stock (has more value than it should have)
- Stock pooling:
- Speculation-with stocks:
- income inequality: gap between riches and poors
- Federal Reserve Board: powerful organization, bankers' bank, rules and controls the market
Video
Causes of the market crash: 1929
- watered stocks: inflated, not real value
- over speculation during the 20's (buying and selling quickly)
- buying on margin: led to people being in debt, people stopped buying and watered stock prices
- over production of goods (too much products for the demand, prices and companies profits go down, people got fired)
- uneven distribution of wealth
- too much borrowing from the banks (but no pay back because no background check up on people)
- Federal reserve increased interest rates
- lack of government regulations
Video
Effects of the crash: list
- investors and businesses lost millions of $ (5% of the people)
- thousand of banks fail-savings are wiped out
- businesses close down, cut production- lay off workers
- unemployment rises, people quit spending money
- great depression sets in
- depression spreads to Europe and the rest of the world
Causes of the great depression: explain
- over production of goods (can't sell it, prices go down, fired people)
- under consumption of goods by customers
- agricultural slump due ti over production
- high protective tariff (taxes) policies in the 20's
- taxes benefits the rich. rich got richer and poor got poorer
- stock market crash
Effects of the great depression: list
- New deal programs start (made the gov. much larger)
- deficit spending starts
- The New Deal creates many organizations that are still around today. Social security, welfare
- fascist, military and communist dictators come to power all around the world
Cycle of the GD:
> companies lose money so they lay people off > unemployment goes up > less money to spend by customers > companies have to lay more money> cycle repeats
Project
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