Great Crahs

Question 1

Black Tuesday

Answer 1

• October 29 1929, massive selling of stocks =panics sets in= evryone selling after previous days
  ○ the experts in stocks realized the inflation early on and pulled out
  § people started to panic as they wondered why the experts were pulling out of the stock market.
  ○ realized that the stocks were over valued
  ○ people rushed to sell, since everyone selling and no one was buying, prices plunged fast
  ○ happened on wall street
  
  • as investors sold price of stocks plunged
  • banks also invested their constumors money into stocks, banks could not recover their depositor’s money
    ○ workers who didn’t invest lost savings because of the banks
  • economic downturn
    ○ lost jobs and could not pay for necessities
    ○ demand for consumer goods dropped
    ○ businesses went out of business
    and on and on

Question 2

Effects of Black Tuesday

Answer 2

1. thousands of investors wiped out
   
   2. Banks demanded payments for loans but the borrowers were broke
   3. Many companies had borrowed money to fund expansions of companies and had to shut down = RISE IN UNEMPLOYEMENT
   4. People had bought many stocks and intems on credit, could not pay back the loans and the banks had to reposses items (houses)
   5. People could not afford clothes, food, and other stuff= causes more companies to go bankrupt and put more people out of work
   6. Trigger to the great depression (worst economic downturn in history)

Question 3

Long term causes of the Great Depression

Answer 3

Easy credit 
Lack of financial regulation
Dependence on the us economy 
Buying on margin
Decrease in demand for Canadian exports 
Over expansion and overproduction

Question 4

Relief payments

Answer 4

Relief Payments:
why were relief Payments never in cash?
	- issued in goods rather than cashi
		○ the goods were selected
	- to prevent people from buying luxury items
Criteria for direct relief payments:
	1. Prove that you cannot support yourself and that a relative cannot help you
	2. Be a man supporting a family
	3. turn in your liquor payment
	4. Remove your telephone from the house
	5. Register at the unemployement office

Question 5

Environment

Answer 5

Grasshoppers:
- came in swarms and ate everything
- live stock that ate them becmae inedible (could not eat eggs of chickens who ate the grasshoppers)
Dust Storms:
- caused by overuse of land where theres no vegetation left to hold the loss soil to the groudn

Question 6

Relief camps

Answer 6

Complaints:
- isolated (no human contact, afraid of being forgotten)
- poor living conditions (hog like quarters)
- pay is meager for the amount of work
- no vote
- no commities
Rules and Regulations:
1. must be a single male at least 18 years of age living at home, fit, and unemployed
2. cannot return to camp if leaving for any reason other than taking a job
3. no commities
4. work 44 hours a week on road building and tree planting
allowance of 20 cents per day and an additional 1.3 cents for tobacc