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Causes of the Great Depression

Great Depression

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Samantha Greenblatt January 30th, 2014 US6 Causes of the Great Depression Stock Market Crash: Documents C, D, F The stock market crash was one of the causes of the Great Depression because at the time almost every citizen had invested in the stock market. When it crashed more than 40 billion dollars were lost. Many Americans believed they could get rich by investing in stocks so that is what they did. Because people?s life savings were put in the stocks, they lost all of their money. They had no money to spend, which meant businesses had no income. With no money there was no consumption, which caused businesses to fail and inevitably caused the Great Depression. Margin and installment Buying: Documents G, H

Great Depression

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Great Depression In Class Notes Causes of the Great Depression Stock market crash Overproduction Industry Agriculture Industries produced more goods because of good economy in the 1920s Did not raise wages to keep up Results in under consumption Wages stayed stagnant ? market flooded with goods that cannot be purchased Unequal distribution of wealth No middle class Top 1% of Americans had more wealth than the bottom 42% of Americans Monetary policy Federal government raised interest rates in the 1920s People pulled money from banks to invest with stocks Government didn?t help the bank High tariffs and war debts Increase tariffs Election of 1932 Republican: Hoover (incumbent) Sent out the ?bonus army? on the veterans who marched on the mall

Chap 32 AP US History notes

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A.P. U.S. History Notes Chapter 32 ?The Politics of Boom and Bust? (1920-1932) Chapter 32 Essential Learnings / Goals / Objectives I. Explore the economic issues involved in the Boom/Bust of the 20s. Vocabulary / Significant Terms: ?cronies? ?reactionaries? ?Merchant Marine? ?injunction? ?moratorium? ?parity? ?hung jury? ?harrow? ?reparations? ?devaluation? (of currency, also ?floating? currency) ?paternalism? ?quagmire? ?recourse? ?torpor? ?recalcitrant? ?exacerbated? I. The Republican ?Old Guard? Returns (3 Republicans win the 3 presidential elections of the 20s) A. Harding was inaugurated in 1921, looking presidential. 1. He was one of the best-liked men of his generation.
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