MONDAY-
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 Board
Dow Jones
-one of the several stock market indicators created by Charles Dow in 1896
-The Dow Jones consists of 30 of the largest companies in the US
-The Dow is an overall indicator for how the stock market is doing
Ex- Apple, GE, Home depo, Walmart, Walt-Disney, Nike, Microsoft, Verizon, Visa, McDonald, Coca Cola
TUESDAY-
Buying on Margin-allows more people to buy stock (middle & lower class) 10% down
Watered Stock- over priced stock
Stock Pooling- rich guys buy cheap stock -goes up quickly then they sell
Speculatin with stocks - people that played the stock market
Income Inequaity- small % that has most of the money in the world
Federal Reserve System- created in 1913 under President Woodrow Wilson, major goal was to stop banking panics (runs), broke the country in to 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 & deflation, controls interest rates for borrowing money, encourages people to borrow money for big purchases ex: homes, cars
Black Tuesday- Oct. 29, 1929
WEDNESDAY- no school
THURSDAY-
Causes of the Stock Market Crash
-Stock prices were grossly inflated, did not have real value-watered stock prices
-Overspecuation 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 $$
-Businesses cut production-laid off workers
-Unemployment rose-people quit spending money
-Great Depression started
-Depression spread to Europe and other parts of the world
Causes of the Great Depression
-Overproduction of goods
-Underconsumption of goods by consumers
-Agricultural slump in 1920's due to overproduction
-High protective tariff policies of the 1920's
-Taxes benefiting the rich-trickle-down
-Stock market crash
-Banks closing
Effects of the Great Depression
-New Deal programs start-makes the US gov't much larger
-Deficit spending starts
-The New Deal created many organizations that are still around today-social security, welfare
-Fascist, military and communist dictators come to power throughou the world
The Vicious Cyle of the Great Depression
-Companies lose $$ 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 and survive during the Great Depression? grew gardens, made their own clothes, sold homes lived in hoovervilles, breadlines, women stayed home and took care of the children, soup kitchens, hoboes hopping height trains, selling apples
FRIDAY-
Dust Bowl- need a lot of food so farmers make more crop (more food)
Dry erosions
Nebraska, Kansas, Oklahoma, Texas -Great American Dessert
Okies- people who decided to take off and go to California for work
Hoover Struggles with the Great Depression- Philosophy
Viewed as uncaring and as a President who did very little to help with the Great Depression. Not true
Hoover's Fight Against the Great Depression
-Encourage 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 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
Presidents Organization for Unemployment Relief -1931
-helped 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 problme of the Great Depression
Boulder (Hoover) Dam
-located in Las Vegas
-cost $165 million
Why were there so many projects? jobs, water, energy to sell, $
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