Monday - Buying on credit - "Buy now and pay later"
Stock/Stock market - Stocks is a share of a company
Dow Jones Industrial Average - Largest 30 companies in the US; Overall indicator for how the stock market is doing (Microsoft, Nike, Mcdonalds, Coca-Cola, Apple, Caterpillar, Vista, Verizon, Walmart)
Tuesday -
Buying on margin - Buying stocks on credit. Allows middle class people to be able to buy stock
Watered stock - Over-priced stock
Stock pooling - Rich guys would buy cheap stock so the price of the stock goes up quickly and then they sell to other people becoming rich.
Speculation-with stocks - People that play the stock market. They buy and sell stock.
Income inequality - The non rich people couldn't afford to buy things anymore. The rich only had so much to buy.
Federal Reserve Board - Mojor goal was to stop banking panics, Broke the country into 12 districts each with a Federal Reserve Bank. Bankers bank - Banks would get money from other banks if in need. Controls the amount of money in circulation. Controlling inflation and deflation. Encourages people to borrow money for big purchases-homes, cars, etc.
Black Tuesday (Oct. 29, 1929) - There were signs that warned people that their might be a severe crash coming up. Nobody believed this because they wanted to have faith.
Wednesday - No School
Thursday - Causes of the Stock Market Crash
- Stock prices were inflated, did not have real value-watered stock prices
- Overspeculation during the 1920's - Led to overpriced stock ,
- "Buying on margin" - Led to people being in debt and watered stock prices
- Overproduction of goods - Underconsumption of goods by consumers
- Uneven distribution of wealth
- Too much borrowing from banks
- Federal Reserve increased interest rates
- Lack of government regulation
- Agricultural slump in 1920's due to overproduction
- High protective tariff policies of 1920's
- Taxes benefiting the rich- Trickle-down
- Banks closing
Effects of the Stock Market Crash
- Investors and businesses lost millions $$$
- Businesses cut production - laid off workers
- Unemployment rose-people quit spending money
- Great Depression started
- Depression spread to Europe and other parts of the world
- New Deal programs start- makes the US government much larger
- Deficit spending starts
- The New Deal created many organizations that are still around today-social security, welfare
- Fascist, military and communist dictators come to power throughout the world
The Vicious Cycle of the Great Depression - Companies lose $$ 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
What did people try to do to survive during the Great Depression? Gardening, Making their own clothes, Hoovervilles, Breadlines, Soup kitchens
Hoovervilles - Schacks for people to live in during the Great Depression
Friday - Dust Bowl - There was no rain, a lot of farming happened, no crop rotation, terrices. Okies - Decided to pack up, leave and go to California to find work.
Hoover struggles with the Great Depression - He was viewed as uncaring and as a President who did very little to help with the Great Depression. This was not exactly true.
Hoover's fight against the Great Depression - Encouraged people to be patient, stay positive and volunteer to help each other
- Federal Farm Board - Stabilized prices and to promoted 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 Repatritaion - Mexican immigrants were encouraged/forced to go back to Mexico
Revenue Act of 1932 - Increased taxes so US gov't had $$
Hawley-Smoot Tariff - Raised tariffs to record levels
POUR - Help US citizens who lost their jobs due to the Great Depression, Its purpose was to coordinate local welfare agencies, without spending government money
Boulder(Hoover) Dam - Created jobs for people, used for energy,
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