Chris GutierrezU.S. History II HonorsUnit 2: Great Depression & New DealChapters 23-25Concepts1.President Hoover’s beliefs:Herbert Hoover believed in the American Capitalist system, primarily because he had achieved great success because of it. His beliefs are significant because did not believe in big government, and that’s how he would run the country; with little government intervention in business. 2.Buying on Margin:Buying on Margin is when you put down a small sum of cash and borrow the rest to invest in a stock. Buying on Margin is historically significant because it caused a great stock market gambling, and it weakened the connection between the value of a company and the prices people were paying for those companies’ stocks.3.The Great Crash:On October 29, 1929 the stock market took the worst hit, prices of thousands of stock fell abruptly, and about 16.5 million shares were being bought and sold. The Great Crash is historically significant because it was the beginning of the worst economic depression in United States History.4.Farmer Aid:The government set up the Federal Farm Board in 1929 to lend farmers money and to help relieve them from falling prices. The Farmer Aid is significant because it was an initiative by the government to help farmers, however prices of crops continued to fall to record low prices, crops were mass produced, and the government lost $185 million from supporting the farmers.5.Bank Runs:People everywhere started withdrawing their money from banks when news of the stock market crashing broke; this caused massive bank failures because banks weren’t able to keep up with such a huge demand for cash. This is historically significant because millions of people lost their life savings due to bank failures, which were causedby people withdrawing their money and people not repaying their loans (mainly because farmer’s crops dropped in price).
Chris GutierrezU.S. History II Honors6.Hoover’s Help