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The Great Depression by Mind Map: The Great Depression
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The Great Depression

Stock Market Crashed - Oct. 29th 1929

Panic selling. Everyone sells at once.

Banks were forced to get loans

Market doesn't recover until 1954

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

Stock Market-

People bought stock in hope of getting money

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

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

Investor had to pay 10% value of stock

This was called buying on Margin

Poor Got Poorer

Unemployment Rose

People could afford less

Production Cutback

Further unemployment

Problem One

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

Economy doubled around 25' because of technology

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

Problem Two

Uneven distribution of wealth

Middle class depended on jobs

When jobs got cut, middle class had low savings

Low Savings = Low Consumption = Bad Economy

Hoover

Pulled Government out of economy

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

This action stimulated U.S. economy

He was unpopular but tried to get a better standing

Was to late for make emergency banks and loans

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

Tariff Wars

higher taxes on imports & exports

Caused people to stick to their own countries goods

Bankers Panic

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

Hoped to pay back banks but price was too low

The New Election

25% unemployment

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

Hoover Renominated

FDR Won Election by a Landslide

THE NEW DEAL

Social Security Act

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

AAA had farmers cut back on production

millions starving because food production is low.

AAA was declared unconstitutional, To much control over in individual states

NIRA & NRA

Shortened work hours

No child labor

work redirected to industry

Election of 1936

He won easily

This gave him a mandate to continue his New Deal policies