history chapter 23
Terms
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- bull market
- upward trend of stock prices
- bear market
- downward trend of stock prices
- margin buying
- purchase stock with borrowed money which was very risky becuz as long as market was bull it was okay but if market went to bear people feel into debt
- black tuesday
- tuesday, october 29, 1929--16 million shares of stock dumped on the market
- black thursday
- thursday october 24, 1929
-
what caused the market crash
4 things -
1. rapid buying and selling inflated prices making stock more than their worth.
2. interest rates increased causing large investors to sell shares
3. margin buying
4. as prices decreased brokers called margin customers and demanded money that they didn't have so they were forced to sell their shares as losses. - why did american invest in the stock market
- hoping to earn profits from rising stock prices. quick money
- what is the great depression
- 1929 to 1933 the us economy sank into a deep economic downturn between 1929 and wwII
- what is GNP
- gross national product. The total value of all goods and services produced in a year in the US
- What was the GNP prior to the market crash
- 103 billion
- What was the GNP in 1933
- 56 billion
- What happened during the depression
-
1. GNP fel
2. Income fell by 1/2
3. Banks closed becuz they couldn't collect on debt
4. millions lost jobs
25% of workforce unemployed
5. factories,mines, auto and stell inductries reduced production or shut down
6. depositors fearing bank failure, pulled money out
7. banks went out - what caused the depression
-
1. stock market crash
2. world economy faced debt from WWI
3. Dependence on credit
4. unequal distribution of wealth
5. overproduction - explain unequall distribution of wealth and its effects
- Unequal distribution of wealth means that in 1923 to 1929 the wealthiest 1% of nation income increased 63% while the rest of the population decreased 4%. This created lack of money for most of the population to boost the economy.
- smoot-hawley tariff
- highest tariff on imported goods in u.s. history in 1930. The u.s was taxing goods coming into country in hopes to boost economy, but this just raised prices.
- business cycle
- ups an downs of doing business. Industries increase production and hire more workers until surpluses pile up. Industries then cut back on production and lay off workers causing recession or depression
- How many americans unemployed in 1929
- 1.5 million
- how many americans unemployed in 1932
- 12 million
- what caused unemployment
- industry production fell and caused unemployment. Those not unemployment took cuts in pay to just keep jobs
- Racial discrimination during the depression
- Black workers were first laid off
- Bronx Slave market
- Black women stand on the street corners and try to obtain work as maids
- Why did the % of women in the work force increase during the depression
- Women were cheaper help
- What percent of the workforce lost their jobs
- 25%
- mutualistas
- Mexian-American communities formed mutal aid societies to help local residents living in the city
- Rent parties
- Large social gatherings that charged small admission to help pay someone's rent
- Breadlines
- Bread and water given out throught charities such as the red cross
- in 1932 how many children suffered malnutrition
- 1 out of 5
- shantytowns
- collection of shelters build out of packing boxes, lumbers or other thrown away items
- nickname for shantytowns
- hoovervilles--mocking hoover
- newspaper used as blankets were called
- hoover blankets
- What was rural life like during the depression
-
1.farmers were letting crops rot becuz no one could buy them
2. famers had to slaughterrr cattle they couldn't afford to feed
3. banks foreclosed on farms
4. southern farmers suffered with no food at all - What happened during a farm auction
- Neighbors of the farmers banded together and bid very low prices on items up for auction. Banks didn't get much money for auctioning of farm. After auction, farmer would get back items from neighbors
- What happended to tenant farmers in the south
- lost land altogether
- What effect did the depression have on families?
-
1. divorce rose
2. less marriages
3. birthrate declined - What was the psychological impact on people during the depression
-
1. 20,000 committed suicide
2. habits of saving and making evey penny count
3. wanted financial stablity and material comfort - what type of movies were most popular during depression
- ganster movies
- popular musical
- The gold diggers of 1933
- popular song from musical
- We're in the Money
- What popular icon started during the depression
- Walt Disney
- Radio
- popular "free entertainment" during the depression
- How did the american people feel about the gov't prior to the crash.
- Americans felt that the gov't should not interfer with the free-enterprise system
- When depression hit, what did Americans ask of Hoover
- get gov't involved and offer assistance
- Did Hoover believe that is was the gov't job to relieve individual suffering during the depression
- NO
- Famous quote of the times by Hoover
- "people support the gov't, the gov't doesn't support the people"
- So, what did Hoover initial do when depression hit?
-
1. encouraged hard work and strength of the american people during this time.
2. Encouraged private charities and local communities to provide relief - Rugged Individualism
- Hoovers theory that sucess comes from individual effort and private enterprises
- Committee for Unemployment Relief
- Gov't committee that formed and encourraged state and local relief efforts by urging Americans to contribut more to charity to get thru this depression.---FAILED
- What is Committee for Unemployment relief
- Gov't committee formed by Hoover to help during depression. They did nothing but encourage state and local relief to help unemployed americans
- Hoover Dam
- A public works project started by Hoover in an attempt to stimulate business and employ workers
- Home Loan Bank Act of 1932
- Act provided money to Banks, building and LOAN associations for low interst rates mortages. Hoping to increase home construction, and boost economy
- Reconstruction Finance Corp of 1932
- lent large sums of money to railroads, insurance companies and banks hoping to strengthen these key business thru federal loans (cheap) and hoping this wouldn increase employment and decreased bank failures
- How did Americans respond to Hoover
-
Protest
"In Hoover we Trusted and Now We're Busted" - Scottsboro Boys
- trial which unfairly convicted black men
- Bonus Army
- WWI vets who went to Hoover to collect early payment on their pensions for serving their country. They needed this money to survive the depression