Stock market in the 1920's People began heavily investing in stock market because stock prices increased May people thought of it as a short term investment. As a result they sold stocks as soon as the price was at its highest for quick profit. In fact, banks put their customers money to stabilize to try to boo, prices.
Stock market crash of '29 Many Americans were so eager to get in the stock market that they bought on margins". This meant that a buyer would pay 10-20% up front, an borrow the rest from s broker. When the value of the stock dropped below the loan amount, brokers would issue a margin call. This forced buyers to pay back their entire loan immediately. Economic overview Items like automobiles were rapidly bought from credit Appliances were also rapidly bought with aid of ads Although economy boomed some areas were still farming and mining Buying from credit meant banks could lend you money or allow you to use ledgers to pay later
The Great Depression lasted from 1929 to 1940 There were many reasons for the depression 1. Too much buying on credit many people borrowed more money than they could repay . The banks and businesses were affected. Banks didn't have more and businesses who allowed credit did not get paid. This led to many people losing jobs which just made the problem worse
2. Farmers overproduced crops. This caused the prices to drop. This caused farmers to make less and therefore they couldn't repay debts and buy supplies 3. Speculations in the stock market people brought stock but only paid a small portion of it the time of the purchase. Then when the stock went up they would sell it and make more profit plus pay off the price. The election of 1932
Addressing the state of the economy, Roosevelt said in his acceptance speech for his party's nomination Roosevelt
F.D.R Roosevelt won the confidence of the American people. In his inaugural address
The new deal F.D.I F.H.A S.S.A The first objective of the new deal was economic recovery A number of new deal program were
New deal program PSA CWA
West Virginia new deal The subsistence homestead funds CCC is programs hired young men to build cabins,lodges,trails
The rise of Dictators Because of the depression, dictators came to power in a number of countries Adolf Hitler Germany, Benito Mussolini Italy, Joseph Stain Russia , Hideki Tojo Japan