1/29- The Great Depression (1929-1940)
Key Terms
- Buying on credit
- Republican Philosophy- Harding, Coolidge, Hoover
- Laissez-faire, rugged individualism, trickle down theory.
- Stock
- Stock market
- New York Stock Exchange
- Dow Jones Industrial Average
- The Dow Jones Industrial Average(DJIA) is one of several stock market indicators created by Charles Dow in 1896.
- The Dow Jones consists of 30 of the largest companies in the US.
- Apple, Intel, ExxonMobil, Coca-Cola, General Electric, The Home Depot, Walmart, Verizon, Nike, Walt Disney
- The Dow is an overall indicator for how the stock market is doing.
1/30- watched video on Dow Jones
- Buying on margin- buying stocks on credit.
- Watered stock
- Stock pooling
- Speculation-with stocks
- Income inequality
- Federal Reserve Board-
- Federal Reserve System
- Created in 1913 under President Woodrow Wilson.
- Major goal was to stop banking panics(runs).
- Broke the country into 12 districts each with a Federal Reserve Bank.
- Federal Reserve's Powers
- Banker's Bank-stop bank runs.
- Controls the amount of money in circulation.- Controlling inflation and deflation.
- Controls interests rates for borrowing money.- Encourages people to borrow money for big purchases-homes, cars, etc.
1/31- no school
2/1- Causes of the Stock Market Crash- 1929
- Stock prices were grossly inflated, did not have real value-watered stock prices.
- Over Speculation during the 1920's.
- Led to overpriced 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.
Effects of the Stock Market Crash
- Investors and businesses lost millions.
- 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.
- 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-makes 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 come to power throughout the world.
The Vicious Cycle of the Great Depression
- Companies lose $$ so they lay people off.
- Unemployment rate goes up and less people buy goods as income has dropped.
- Companies profits fall so they have to lay more people off or close.
- Cycle repeats itself.
2/2- Hoover struggles with the Great Depression.
- Herbert Hoover
- He struggled because people didn't like that the government wasn't helping them.
- He encouraged people to be patient, stay positive and volunteer to help each other.
- Federal Farm Board
- Stabilized prices and to promote the sale of agricultural products.
- Norris-La Guardia Act
- Strengthened labor unions.
- Hoover Moratorium
- One year halt on German war payments to France.
- One year halt on war payments from Great Britain and France to the US.
- Mexican Repatriation
- Mexican immigrants were encouraged/forced to go back to Mexico.
- Revenue Act of 1932
- Increased taxes so US government had $$.
- Hawley-Smoot Tariff
- Raised tariffs to record levels.
- President's organization for Unemployment Relief- 1931
- Help US citizens who lost their jobs due to the Great Depression.
- Its purpose was to coordinate local welfare agencies, without spending government money.
- THe program ended on June 30, 1932 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 Depression.
- Boulder(Hoover) Dam
- Boulder Dam (now Hoover Dam) is located near Las Vegas.
- The Hoover Dam project including the dam, the All-American Canal, the town of Boulder City, highways, railroads and various other works, cost $165 million to build.
Comments