- Slides: 8
THE STOCK MARKET AND THE GREAT DEPRESSION
STOCK MARKET v. Market places in which shares of companies are bought and sold
CURRENT PRICES v. Nike ~ $65 v. Apple ~ $107 v. Facebook ~ $112 How much would it cost to buy 100 shares Nike? Of Apple? Of Facebook?
PRICE MOVEMENT v. What would cause the price of a stock to go up or down? v. How does the price moving effect your investment? v. Define “Speculation”, How might speculation effect stock prices?
THE WORLD AFTER WWI v Most of Europe is in chaos, economies are failing, its in a very difficult rebuilding process v Germany is in extremely bad shape because of the sanctions of the peace treaty v United States is doing very well, “Roaring 20’s” lots of new inventions and the stock market is booming
CAUSES OF THE GREAT DEPRESSION v. Overproduction of goods v. Lack of protection for banks v. Over Speculation in the Stock Market/Stock market crash v. Bad government policies
THE GREAT DEPRESSION v. Extremely high unemployment v. Homelessness v. Poverty and Hunger
HOW DOES THE GOV’T RESPOND v Put people to work (Gov’t programs) v Protect the elderly (Social Security) v Protect the Banks (FDIC) v In general, increase government spending to decrease unemployment and suffering. This is very similar to how Hitler responded in Germany as well.