Crash & Depression
I. Stock Market Crash
A. Economic Terms
1. Bull market-#
2. Bear market-#
3. Buying on margin (margin) #
-Margin call
4. Speculation-#
5. Dow Jones Industrial Average-average stock prices of major industries
6. Economic Contraction-economic decline marked by a falling output of goods and services
7. Depression-long and severe economic contraction
B. Underlying or Long Term(Uneven, Loss, & Fed)
1. Low interest rates
2. Uneven distribution of wealth
3. Overproduction
4. high tariffs
5. stock market speculation
6. falling demand
C. The Great Crash
-Black Tuesday-October 29, 1929-#
-Bank runs-#
D. Ripple Effect of the Crash or Cyclical effect -*(pg 404)
E. Great Depression-Most severe economic downturn in history from 1929-1941.
F. Impact on Workers
1. 12 Million Unemployed by 1932 (1/4 of workforce)
2. GNP (Gross National Product-total value of goods and services produced by a country) dropped from 103 to 56 billion
II. Social Effects of Great Depression
A. Hoovervilles#-*
B. Dust Bowl-#
C. Hobos-#
D. Families in the Depression
III. Literature, Arts, and Entertainment
A. Steinbeck “The Grapes of Wrath”-#
-Magazines-Life & Time
B. Movies-Gone with the Wind, Wizard of Oz, and Shirley Temple
-Walt Disney-Snow White and Seven Dwarfs-
C. Radio-The Lone Ranger, War of the Worlds
Soap operas-Guiding Light
D. Dorothea Lange-Photographer of depression
IV. Hoover and the Election of 1932
A. Hoover’s strategy
1. Restore consumer confidence
2. Urging businesses to voluntarily maintain wages and production
3. Public Works
4. Opposed direct aid by Federal Government
B. Government Acts
1. Agricultural Marketing Act-(6/1929)-created Federal Farm board to stabilized prices: Failed
2. Public Works-#
3. Hawley-Smoot tariff-#
4. Reconstruction Finance Corporation(RFC) 1932-#
5. Federal Home Loan Act (1932)-Discounted mortgage rates, helped people keep homes
6. Emergency Relief & Construction-1st Direct relief funds, Public works and state loans
C. Protests against the Government
1. Hunger Marches
2. Bonus Army-#
3. Rise in radical parties such as Communist & Socialist
D. Election of 1932-Between FDR and Hoover, FDR won promising a “New Deal” for America