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

International

Soviet Union decreased price of wheat, so other the government can gain money.

Resulted in another Banker's Panic, but this became world wide

American banks gave loans to Germany

Caused bankrupcy

Americans lost their savings, since America announced bankrupcy as well

Before the Crash

A lot of investment in stocks

Banks were quick to give loans to investors

Buying on Margin

Investors only had to pay 10% of the stock's actual value during the time of purchase.

Balance is paid at a later time

Crash

The Crash happened on October 29, 1929. And lasted until 1942

Banks/ Bankers tried to sell stocks all at once and failed

This is called Panic Selling

Very few people were able to trade on the stock exchange

The economy had a ripple effect caused by the crash

Unemployment

Unemployment increased and the government didn't help.

Product Conductivity decrease, causing more people to lose their jobs.

With more people unemployed, the purchasing power decreased more and so did product conductivity.

This is The Economy Cycle

Poor

The poor people became even more poor

42% of America was under the poverty line

Middle Class

58% of America was people who were in the Middle Class.

People lost jobs when productivity decrease and had to cut back on purchases

The decrease in consumption affect the whole country in a bad way.

President Hoover

He didn't want the government to play an active role in the economy

Voluntary Non - Coercive Cooperation

Tax breaks for bankers/banks and businesses, but in return Hoover got a private sector for economic investment

Hoover Mortatorium

Hoover made an agreement to the European powers that they owned Americans money., This helped pause the war debts and helped certain payments., European Countries bought American goods to help the economy for Americans.

Reconstruction Finance Corporation

Emergency loans to banks

Too late

Tariff War

To protect the U.S. industry

The U.S. government didn't realize that this became a global economy and was not just America being affected

Productivity decreased again

Soldiers

WW1 soldiers were not being paid by government

Soldiers walked to Washington D.C. to get Government's attention

In a year, these soldiers were dispersed by the Army

Franklin D. Roosevelt

The New Deal

Roosevelt ordered this and had the banks shut down and inspected until people's confidence in the government and banks returned, and when banks were able to invest in the economy.

Security Exchange Commision, The stock market reform

Gold Standard, Government couldn't make more money than the Fort Knox gold reserve could allow, Inflation, Dollar value decreased and government gained money.

NIRA/ NRA

National Industrial Recovery Act and National Recovery Admin

Increase industrial growth

No child labor, shortened work hours

Liberty League

Supreme Court overturned NIRA/NRA

Supreme Court claimed that the Federal government was exceeding its power

TVA

The Tennessee Valley Authority

nationalization v. privatization

Wanted hydroelectric power, control flooding, and private industries.

Federal government wasn't able to control this

AAA

Agrucultural Adjustment Act

Help Farmers restore their farms

Subsides- Farmers had to pay for not supplying foods.

Food production decreased

Whites were paid to work, not the blacks

Food Stamp Act

Gave extra foods to poor and some small farmers

CCC/ NYA

Civilian Conservation Corps/ National Youth Admin

1933

Gave work to young men, ages 18-25

National Labour Relations Act

Outlawed anti- unions and "blacklists"

Unions and labors tactics such as collective bargaining and actions or strikes.

Social Security Act

Creeping Socialism

Welfare State

unemployment insurance and old age pension

1940

Election- FDR ran again

World War

America wanted to remain neutral

But also wanted to support Great Britian

Isolationist Foreign Policy

New Deal Legislation want this

FDR won election again

Reform

Economy

Government interventions with spending

America became Arsenal of Democracy

Social Reform

Government wasn't expected to be involved in any economic crisis.

FDR helped reformed America