Week 5~1/29-2/2

Monday-

The new eal

Relief, Reform and Recovery

 

SOil conservation and Domestic Allotment Act

 

Key Terms

Buying on credit

Republican Philosophy-Harding, Coolidge, Hoover

Laissez-faire-rugged individualism, trickle down theory

Stock

Stock market

Dow Jones Industrial Average

Buying on Margin

Watered Stock

Stock Pooling

Speculation-With Stocks

Income Inequality

Federal Reserve Bond

 

Dow Jones

The Dow Jones industrial Average is one of several stock market indicators created by Charles Dow in 1896

The Dow Jones consists o 30 of the largest companies in the US

The Dow is an overall indicator of how well the stock market is going

Dow goes up- Stock goes up

 

Apple

Coca-Cola

Microsoft

Nike

Walmart

Walt-DIsney

 

Tuesday-

Federal Reserve System

Created in 1913 under president Woodrow Wilson

Major goal was to stop banking panics

Broke the country into 12 districts each with a Federal reserve Bank

 

Federal Reserve’s Powers

Bankers Bank-stop bank runs

Controls the amount of money in circulation

Controlling inflation and deflation

Controls interest rates for borrowing money

Encouraged people to borrow money for big purchases

 

Causes of the Stock Market Crash

Stocks prices were grossly inflated, did not have real value-watered stock prices

Overspeculation during the 1920’s

Led to over priced stock

“Buying on Margin”

Led to people being in debt and watered stock prices

Overproduction of goods

Uneven distribution of wealth

Too much borrowing from banks

Federal Reserve increased interest rates

Lack of government regulation

 

Thursday-

Effects of the Stock Market Crash

Investors and businesses lost millions of $$

Thousands of banks failed-savings wiped out

Businesses cut production-laid off workers

Unemployment rose-people quit spending money

Great Depression started

Depression spread to Europe and other parts of the world

 

Causes of the Great depression

Overproduction of goods

Underconsumption of goods by consumers

Agricultural slump in 1920’s due to overproduction

-During war we needed food for soldiers but now their back so we didn't need it but they kept producing it

High [protective tariff policies of the 1920’s

Taxes benefiting the rich-Trickle-down

Stock market crash

Banks closing

 

Effects of the Great Depression

New deal programs start-making the US government much larger

Deficit spending starts

The new deal created many organizations that are still around today-social security,welfare

Fascist, military, and communist dictators came to power throughout the world

 

The Vicious Cycle of the Great Depression

Companies lose $$ so they lay people off

Unemployment rate goes up and less people buy goods as income has dropped

Companies profits fall so they have to  lay more people off or close

Cycle repeats itself

 

Friday-

The dust bowl

Okies-pack up and move from oklahoma to california

 

Hoover struggles with the Great Depression

Encouraged people to be patient, stay positive and volunteer to help eachother

Fedeal Farm Board

-Stabilized prices and to promote the sales of agraculture products

Norris-La Guardie Act

-Strengthened labor unions

Hoover moratorium

0One year halt on Germany war payments to France

-One year halt on war payments from Great Britain and France to the US

Mexican repatriation

-Mexican immiggrants were encouraged to go back to Mexico

Revenue Act of 1932

-Increased taxs so US government had $$

hawley-Smoot Tariff

-Raised tariffs to record levels

 

Presidents Organization for Unemployment Relief

Help US citizens who lost their jobs due to the Great Depression

It's purpose was to coordinate local welfare agencies, without spending government money

The program ended on June 30 because the government was not willing to help the agencies by giving them money

Local agencies became overwhelmed by the magnitude of the problem of the Great Depresion

 

Boulder Dam

Included buildintg the dam, the All-American Canal, the town of Boulder City, highways, railroads, and various other works

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