The Great Depression

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The Great Depression by Mind Map: The Great Depression

1. Stock Market crashed Oct. 29th, 1929 NYC

1.1. Buying on Margin; gave people the ability to take out loans from banks and only had to pay 10% interest

1.2. Stock Speculation; Buying an item and then turning right around to sell it to make a quick buck // this gave the public a false sense of security.

1.3. Panic Selling; Beginning of October the market crashes causing the panic selling - which was everyone selling @ once.

1.4. Ripple Effect; very little people traded on the side, but soon they to were taken by the dying economy.

2. Unemployment & Productivity

2.1. Uneven Dist. of Wealth ; everything was distributed unfairly 0.1% were making more than 42% were in poverty and the other 58% were pushed up or down into middle class.

2.2. The overproductivity was the 2nd problem causing the great depression.

3. Hoover & Coercive Cooperation

3.1. President Hoover believed government should play active role.

3.2. Persuaded bankers to follow his plan and provide job for the unemployed.

3.3. Hoover wanted to put a stop to war debt.

3.4. But, things like Tariff Wars failed through and everyone had to come to acknowledge the world had become a global economy. However, foreign goods were not purchased the U.S decreased.

3.5. Bankers Panic; Soviet Union flooded the market w/ cheat wheat (1/2 the US price) to get money to back Australian banks.

3.6. Banks of International Settlement; Austria borrowed from Germany

4. Americans React to Hoover

4.1. No one likes Hoover

4.2. Reconstruction Finance Corporation; Hoov established it.

4.3. Rugged Individuals; Hoov invited it to make Americans fell better

4.4. Bonus March // Bonus Army; Boycotting

4.5. Hoovervilles; marched and set up shantytowns; food scraps; hitchhiking journey. After year dispersed by army.

5. 1932 Election

5.1. 1/4 unemployed.

5.2. Winner by a landslide; FDR