The document discusses a speech given by President Herbert Hoover in 1928 about the choice between capitalism and socialism in the aftermath of World War I. Hoover argues that the American system of individualism has led to unprecedented prosperity and near elimination of poverty. The speech touts progress over the past seven years as proof of the success of the American economic system.
A short power-point presentation about "The Great depression". This can get you a 100/100 if the teacher asks you to do a power-point about the great depression. The best power-point presentation you can find about the great depression. Now it's the time to show the class how smart you are and how hard you've worked!
A short power-point presentation about "The Great depression". This can get you a 100/100 if the teacher asks you to do a power-point about the great depression. The best power-point presentation you can find about the great depression. Now it's the time to show the class how smart you are and how hard you've worked!
Slides of a lecture on this topic, delivered at an American university - but perhaps with wider resonance?
Please note that the circles etc are not meant to be representative of the relative weights in any exact manner - they are merely indicative.
Slides of a lecture on this topic, delivered at an American university - but perhaps with wider resonance?
Please note that the circles etc are not meant to be representative of the relative weights in any exact manner - they are merely indicative.
2. President Herbert Hoover
From a speech given October 22, 1928:
….When the war closed, the most vital of issues both in our own country and
around the world was whether government should continue their wartime
ownership and operation of many [instruments] of production and
distribution. We were challenged with a... choice between the American
system of rugged individualism and a European philosophy of diametrically
opposed doctrines -doctrines of paternalism and state socialism.
…. our American experiment in human welfare has yielded a degree of well-
being unparalleled in the world. It has come nearer to the abolition of
poverty, to the abolition of fear of want, than humanity has ever reached
before. Progress of the past seven years is proof of it....
5. Speculation and Crash
• Bull Market
• Buying on the Margin
• Speculation
• Black Thursday
• Black Tuesday
• Bear Market
Speculative bubbles from
the present?
7. Yee Haw Stock Market Crash 1929
Students selected the “Go for the
Gold” option
Some students bought bonanza
chips
Point values decreased
dramatically, all but those who held
tight lost everything they had and
sometimes more
Even those who played it safe lost
their credit
14. The Stock Market Crash of 1929
The Banks The Borrowers The Businesses
The bank gives a $100 loans for
$20 up front. The bank has $20.
The bank gives a $150 loan for
$30 up front. The bank has $50
The recipient takes a $100 loan from the bank. The
recipient has $100.
The recipient buys two shares of stock for $50 each.
The recipient has $0. Buying with loaned money is
referred to as buying on the margin.
Speculation causes stock prices to rise to $75.
The recipient takes another $150 loan. And buys two
more shares of stock. The recipient has $0.
European investors get nervous and start selling their
stock investments. As prices fall, they gain
momentum. The recipient attempts to sell all four of
his stocks for $25 each, for a total of $100.
The business sells two
shares of stock for $100
and invests it in land. The
businessman has $0
The land that the business
bought was overpriced
because of speculation
and becomes worthless.
The business no longer
has enough money to
operate.
Mass production was too successful. Not enough consumers. New technologies and techniques improved farming production as demand decreased. Overproduction = products not selling. Underconsumption = people were not buying as much as was being produced. Farmers had made money supplying food for the Allies during the war. Consumption dropped, so did prices, resulting in less income for farmers, who then turned to credit to buy the consumer items of the day. For the first time in history the number of farmers decreased. Livestock slaughtered in attempt to control prices. Business, dwindled, companies cut back, so declared bankruptcy (sound familiar). Unemployment grew, leave people with debt and no money to consume. As businesses boomed in the first half of the 20s, workers saw gradual increases in their wages, but it still wasn’t enough to solve overconsumption. 1929 top 1% controlled 56% of the wealth, bottom 99% controlled 44% People compensated for the unequal distribution of wealth by buying on credit. When the wealth in concentrated, it prevents most of the people from buying stuff.
Germany had to borrow money from the US to pay off reparations to the Allies. Therefore, The Germans needed to sell stuff.To protect American business from foreign competition, Congress passed the Hawley-Smoot.In reaction, European countries, raised their own tariffs.Businesses with surpluses couldn’t sell their extra stuff to foreign markets.