Week of Feb. 13-17

[1Kara]

Monday: video

Tuesday: video

Wednesday: notes

Causes of the Stock Market Crash

1. Stock prices were grossly inflated
   1. Did not have real value-watered stock prices
2. Over speculation during the 1920's
   1. Led to watered stock
3. "Buying on margin"
   1. Led to people being in debt and watered stock prices
4. Overproduction of goods
5. Uneven distribution of wealth
6. Too much borrowing from banks
7. Federal Reserve increased interest rates
8. Lack of government regulation

Effects of the Stock Market Crash

1. Investors and businesses lose millions of dollars
2. Thousands of banks fail
   1. Savings are wiped out 
3. Businesses cut production
   1. Lay off workers
4. Unemployment rises
   1. People quit spending money
5. Great Depression sets in
6. Depression spreads to Europe and other parts of the world

Causes of the Great Depression

1. Overproduction of goods
2. Under-consumption of goods by consumers
3. Agricultural slump in 1920's due to over-production
4. High protective tariff policies of the 1920's
5. Taxes benefiting the rich
   1. Rich got richer
   2. Poor got poorer
6. Stock Market Crash
7. Banks closing

Effects of the Great Depression

1. New Deal programs start
   1. Makes the US government much larger
2. Deficit spending starts
3. The New Deal created many organizations that are still around today
   1. Social Security
   2. Welfare
4. Fascist, military and communist dictators come to power throughout the world

The Vicious Cycle of the Great Depression

1. Companies lose money so they lay people off
2. Unemployment rate goes up and less people buy goods as income has dropped
3. Companies profits fall so they have to lay more people off or close
4. Cycle repeats itself 

Hoover's Fight Against Great Depression

1. Encouraged people to be patient, stay positive and volunteer to help each other
2. Federal Farm Board
   1. Stabilize prices
   2. To promote the sale of agricultural products
3. Norris-La Guardia Act
   1. Strengthened labor unions
4. Hoover Moratorium
   1. One year halt on German war payments to France
   2. One year halt on war payments from Great Britain and France to the US
5. Mexican Repatriation
   1. Mexican immigrants were encouraged/forced to go back to Mexico
6. Revenue Act of 1932
   1. Increased taxes so US government had money
7. Hawley-Smoot Tariff
   1. Raised tariffs to record levels

Thursday: no school

Friday: no school