The Great Depression

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The Great Depression by Mind Map: The Great Depression

1. Stock Market Crashed - Oct. 29th 1929

1.1. Panic selling. Everyone sells at once.

1.1.1. Banks were forced to get loans

1.2. Market doesn't recover until 1954

1.3. 1920's had a lot of money, banks quick to make loans

2. Stock Market-

2.1. People bought stock in hope of getting money

2.1.1. It was called stock speculation, people buy and sell stocks to make fast money.

2.1.2. Investors began doing this to give a false sense of security and economic confidence

2.2. Investor had to pay 10% value of stock

2.2.1. This was called buying on Margin

3. Poor Got Poorer

3.1. Unemployment Rose

3.2. People could afford less

3.3. Production Cutback

3.4. Further unemployment

4. Problem One

4.1. In the 20's U.S. economy was based on purchasing power and employment

4.2. Economy doubled around 25' because of technology

4.3. No new jobs were made however, and this leaded to overproduction.

5. Problem Two

5.1. Uneven distribution of wealth

5.2. Middle class depended on jobs

5.3. When jobs got cut, middle class had low savings

5.4. Low Savings = Low Consumption = Bad Economy

6. Hoover

6.1. Pulled Government out of economy

6.2. Had France buy American goods instead of being in war debt.

6.3. This action stimulated U.S. economy

6.4. He was unpopular but tried to get a better standing

6.5. Was to late for make emergency banks and loans

6.5.1. Didn't want to erode the American way of thinking with programs of direct gov'tal

7. Tariff Wars

7.1. higher taxes on imports & exports

7.2. Caused people to stick to their own countries goods

8. Bankers Panic

8.1. Soviet Union sold wheat 1/2 price of U.S.

8.2. Hoped to pay back banks but price was too low

9. The New Election

9.1. 25% unemployment

9.2. National Economy is 50% of what it was 2 years earlier

9.3. Hoover Renominated

9.4. FDR Won Election by a Landslide

10. THE NEW DEAL

10.1. Social Security Act

10.1.1. Money was taken out of circulation because of low production and purchasing power

10.2. AAA had farmers cut back on production

10.2.1. millions starving because food production is low.

10.2.2. AAA was declared unconstitutional

10.2.2.1. To much control over in individual states

10.3. NIRA & NRA

10.3.1. Shortened work hours

10.3.2. No child labor

10.3.3. work redirected to industry

10.4. Election of 1936

10.4.1. He won easily

10.4.2. This gave him a mandate to continue his New Deal policies