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Wall Street Crash 1929
Transcript of Wall Street Crash 1929
Market kept falling. “Any lack of confidence in the economic future or the basic strength of business in the United States is foolish.” But, 3 Franklin D. Roosevelt (1933~1945) New Deal : Government intervention AAA (Agricultural Adjustment Act):
restricted agricultural production in order to raise value of crops. Proposed legislation that preserved value of money and prevented gold hoarding. CCC (Civilian Conservation Corps)
WPA (Works Progress Administration)
TVA (Tennessee Valley Authority)
FERA (Federal Emergency Relief Administration)
PWA (Public Works Administration) :
made jobs for people, reduced unemployment rate Proposed legislation that prevented employers from interfering with unions. This led to a dramatic increase in unionization. Blacks and women became involved in unions too. NIRA (National Industrial Recovery Act):
restrict unfair competition in businesses The Event Causes After WW1, stock markets boomed.
People became very optimistic that many invested in stocks.
Stocks rose high, surpassing actual value of businesses/products.
On October 24th, 1929, economic bubble popped. Why did it happen ? size are adjustable, but right click > lock
and then adjust size Private charities helped people without jobs.
Such as Rotary Club that opened soup kitchen to feed hungry and jobless people. Breadline Soup Kitchen - Stabilize markets and solve banking crisis
- Provide unemployment relief
- Encourage unions
- provide welfare Government regulated banking transactions
Federal relief program hired unemployed workers to build public buildings and roads. Program brought unemployment rate down from it's peak.
Government encouraged unions to collaborate against unfair employers( African American,women included ) and discouraged unfair business trades.
Government created social security( pension, insurance ). New Deal was NOT successful in fully restoring US economy. Unemployment rate lingered in 15%. Great Depression continued.
Economic recovery began in 1941, when WWII started and manufacture of weapons increased. 4 World War II 1941~1945 New Deal expanded power of the federal government to intrude business affairs and market. It also created social welfare. Change brought by New Deal is present today in US.
It gave jobs to many people and US economy grew.
Unemployed men became soldiers, women entered the work force building ships and planes.
Market condition improved as production and consumption cycle flowed again.
After WWII America emerged as the economic superpower Solutions Short Term Impacts Summary Government:
-Control of economy
-Public relief program
-Social security Individual:
-Follow correct information
-Preparation for rainy days
-Be charitable.... - The wall Street Crash began 24 October 1929.
- Located in lower Manhattan, New York
- The wall street crash is also knows as the "Great Crash"
- The Biggest Stock market crash in all of history.
- Stocks and shares in the 1920's
- Stocks and shares rose at a phenomenal rate.
- wages increased 25%
- Stock Market Crashed. After Stock Market Crash (1929),
it took 20 years to regain market level before the crash.
So what was the lesson learned? Speculations - - American Industry booms.
- Price of the shares goes up.
- People began to invest more on their shares. Loss of Confidence - A lot of people felt that the stock market equal to a certain profit.
- Bought as much as stocks they could
- Led to lost of confidence. Over Production Of Goods - Companies were producing many goods.
- American goods could not be sold abroad.
- wages were cut. Unequal Distribution of Wealth - 60 % of people where living in poverty The "Crash" - Confidence Dipped
- Investors and bankers began to sell their shares. Long Term Impact Impact Great Depression Unemployment Stock Market Crash Bank Failures Business Failures Question Time! Bibliography People lost trust in financial institutions People withdraw their deposits out of banks By 1933, 44% USA's banks collapsed. Police stand guard outside the entrance to New York's closed World Exchange Bank, March 20, 1931. The trading floor of the New York Stock Exchange just after the crash of 1929 People lost money Business lost money Business shut down Businesses invested in stock market Industrial production dropped by 45 per cent between 1929 and 1932. 1. Did the stock market crash in 1929 on Wall Street affect the ENTIRE world's economies?
2. What are the four short-term impact mentioned in the presentation?
3. What was one of solution introduced? A million and a half workers became unemployed instantly nationwide in 1929.
1 in 5 workers, 12 million people, were jobless by 1932 Unemployed men march in Toronto, Ontario, Canada. Poverty and Despair the world economy was plunged into the Great Depression signaled the beginning of the 10-year Great Depression that affected all Western industrialized countries "If America sneezed, the rest of the world caught a cold" Unemployment Rates United States (25%)
the United Kingdom (20%)
Germany (30%). America slammed the door on imports the world trade economy falling apart Global Economy 2 million men became homeless Suicides went up by 30% 2 Businesses:
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"Wall Street Crash of 1929 and Its Aftermath." Wall Street Crash of 1929 and Its Aftermath. N.p., n.d. Web. 14 Oct. 2012. <http://www.historylearningsite.co.uk/wall_street_crash.htm>.
"Wall Street Crash of 1929." Wikipedia. Wikimedia Foundation, 14 Oct. 2012. Web. 14 Oct. 2012. <http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929>.
"The World of B." The World of B. N.p., n.d. Web. 14 Oct. 2012. <http://bethkwilson.wordpress.com/2012/03/13/1929-wall-street-crash/>. WWII ended Great Depression. Stock market is part of real economy interlinked with banks and jobs. It is not a risk-free way to earn money.