03_18 great depression[1]

03_18 great depression[1] - Notes Great Depression What...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Notes Great Depression What Caused It? 1. Stock Market Crash – “Black Thursday” a. Why would this cause it? a.i. American stock markets crashed a.ii. $26 billion lost b. Why is this not the central cause? b.i. The stock markets didn’t matter all that much; i.e. not a critical component of the system – only 2% of Americans were invested in them b.ii. The stock market is a) a symptom of what is to come and b) underlying economic crisis caused this crash 2. Bank Collapses and Debt Crisis a. In WWI, the US lent money to the Allies (primarily UK/France) b. So UK/France was trying to pay back US and using reparations from Germany c. But Germany was borrowing from US d. This created an endless cycle of debt for the borrowers (particularly the Germans) e. Finally, UK/France stops paying and America suffers a massive bank collapse f. Diagram below: g. Hoover and Roosevelt were both in support of this idea, but took measures against it very differently (size of government) h. There was no place to sell American goods (no one had any money)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/21/2012 for the course HIST 1320 taught by Professor Murphy during the Spring '08 term at Texas State.

Page1 / 2

03_18 great depression[1] - Notes Great Depression What...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online