The Great Depression

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The Great Depression by Mind Map: The Great Depression

1. International

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

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

1.2. American banks gave loans to Germany

1.2.1. Caused bankrupcy

1.2.2. Americans lost their savings, since America announced bankrupcy as well

2. Before the Crash

2.1. A lot of investment in stocks

2.2. Banks were quick to give loans to investors

2.3. Buying on Margin

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

2.3.2. Balance is paid at a later time

3. Crash

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

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

3.2.1. This is called Panic Selling

3.3. Very few people were able to trade on the stock exchange

3.3.1. The economy had a ripple effect caused by the crash

4. Unemployment

4.1. Unemployment increased and the government didn't help.

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

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

4.3.1. This is The Economy Cycle

5. Poor

5.1. The poor people became even more poor

5.2. 42% of America was under the poverty line

6. Middle Class

6.1. 58% of America was people who were in the Middle Class.

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

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

7. President Hoover

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

7.2. Voluntary Non - Coercive Cooperation

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

7.3. Hoover Mortatorium

7.3.1. Hoover made an agreement to the European powers that they owned Americans money.

7.3.1.1. This helped pause the war debts and helped certain payments.

7.3.1.2. European Countries bought American goods to help the economy for Americans.

7.4. Reconstruction Finance Corporation

7.4.1. Emergency loans to banks

7.4.2. Too late

8. Tariff War

8.1. To protect the U.S. industry

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

8.3. Productivity decreased again

9. Soldiers

9.1. WW1 soldiers were not being paid by government

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

9.3. In a year, these soldiers were dispersed by the Army

10. Franklin D. Roosevelt

10.1. The New Deal

10.1.1. 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.

10.1.2. Security Exchange Commision

10.1.2.1. The stock market reform

10.1.3. Gold Standard

10.1.3.1. Government couldn't make more money than the Fort Knox gold reserve could allow

10.1.3.2. Inflation

10.1.3.2.1. Dollar value decreased and government gained money.

11. NIRA/ NRA

11.1. National Industrial Recovery Act and National Recovery Admin

11.2. Increase industrial growth

11.3. No child labor, shortened work hours

11.4. Liberty League

11.4.1. Supreme Court overturned NIRA/NRA

11.4.2. Supreme Court claimed that the Federal government was exceeding its power

12. TVA

12.1. The Tennessee Valley Authority

12.2. nationalization v. privatization

12.3. Wanted hydroelectric power, control flooding, and private industries.

12.4. Federal government wasn't able to control this

13. AAA

13.1. Agrucultural Adjustment Act

13.2. Help Farmers restore their farms

13.3. Subsides- Farmers had to pay for not supplying foods.

13.3.1. Food production decreased

13.3.2. Whites were paid to work, not the blacks

13.4. Food Stamp Act

13.4.1. Gave extra foods to poor and some small farmers

14. CCC/ NYA

14.1. Civilian Conservation Corps/ National Youth Admin

14.2. 1933

14.3. Gave work to young men, ages 18-25

15. National Labour Relations Act

15.1. Outlawed anti- unions and "blacklists"

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

16. Social Security Act

16.1. Creeping Socialism

16.2. Welfare State

16.2.1. unemployment insurance and old age pension

17. 1940

17.1. Election- FDR ran again

17.2. World War

17.2.1. America wanted to remain neutral

17.2.2. But also wanted to support Great Britian

17.3. Isolationist Foreign Policy

17.3.1. New Deal Legislation want this

17.3.2. FDR won election again

18. Reform

18.1. Economy

18.1.1. Government interventions with spending

18.2. America became Arsenal of Democracy

18.3. Social Reform

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

18.4. FDR helped reformed America