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

Stock Market Crash

rapid buying and selling of stocks(Stock Speculation)

stock value increased

Buying on Margin

Investors only paid 10% of stocks actual value at time of purchase

Quick turnover didn't aid co.'s

Needed long term investments to pay bills

Inflated stock value

Gave false sense of security/confidence

Productivity/Unemployment

1920's U.S. eco was based on

Productivity

Purchasing Power

Employment Cycle

Purchasing demand resulted in high employment

Over Production

Uneven dist. of wealth

48% below poverty line

58% middle class

Hoover's response

Government shouldn't play role in government

VOLUNTARY NON - COERCIVE COOPERATION- tax breaks for private sector investments

Euro. countries were to purchase U.S. goods

Banker's panic

Tariff Wars

Democrats passed high tariffs (Smoot Hawley)

Countries passed high tariffs (no foreign countries purchased U.S. products)

U.S. productivity decreased again

Americans react

Isolated protest movements

Dairy farms dump milk due to low price

Veterans march on Washington due to pension loss

1932 Election, FRANKLIN DELANO ROOSEVELT(winner by landslide), 1 out of 4 Americans unemployed, Nat'l income 50% than in 1929

New Deal

STEP ONE:

Banking holiday- banks shut down for inspection, People's confidence returned

STEP TWO:

Stock market reform, Buying on margin was regulated, Security Exchange Commission, First chairman was Joseph P. Ken

STEP THREE:

Put more money in circulation, Wages and prices increased

NIRA and NRA

Fair labor codes is established

Wages

No Child Labor

Shortened Work Hours

Liberty league urged Supreme Ct. to overturn NIRA and NRA

Claimed federal gov. were exceeding authority

Agricultural Adjustment Act

Passed in 1933 to aid farmers

Food production down

In 1935, was declared unconstitutional

CIVILIAN CONSERVATION CORPS (CCC)

Established work for men 18-25

Blacks not permitted to enroll