Download The Great Depression Guided Notes

Name:
The Great Depression Guided Notes
Recap
1. What do you remember about the Roaring 20s?
Roaring 20s
1. The Roaring 20s was a time of major
United States.
in the
2. Perhaps the most important change was that of the
.
3. America became an extremely
nation.
Drawback
1. During the Roaring 20s many people spent money they did not have.
2. They bought on
and
Buying on Credit
1. Buying on credit is when someone
money from another person or company.
2. The person borrowing money through credit can
what
they
or
now but they
have to
the money borrowed back to the lender of the
money.
Buying on Credit Example
1. Here’s an example:
2. Jamie has a credit card with her bank.
3. She really wants a pair of shoes but does not have the money available until
she gets paid at the end of the month.
4. She uses her credit card to buy the shoes now and she pays the bank back
when she gets paid.
Stock Market
1. The Stock Market is what helps
America’s
.
2. A stock is a
of
in a company.
3. So a stock market is a place where stocks are
, or
4. Buying stocks can
chances of making more
,
.
or
your
.
5. You should seek a financial advisor if you ever decide to buy stocks. It can
be a very
move!
Stock Market Example
1. Ford is a company that makes cars.
2. Let’s say Jesse is hoping to make more money so he buys a stock in Ford in
2012.
3. In 2012, Ford has an excellent year in sales thus
the value of the
company. Jesse
money because he partly owns Ford.
Jesse
4. In 2013, Ford has a horrible year in sales thus
the value of the company.
money because he partly owns Ford.
5. You can
or
stock market.
money in the
Buying on Margin
1. In the 1920s, the stock market gained a lot of
2. It was
that people were making
of dollars by buying
3. Many people who could not afford to buy a stock
.
on
.
4. Buying on margin is sort of like buying on
buying stocks put down a small down
the rest would be
. The people
and
by a stock
.
5. A stock broker was like a
They
card company.
money out to people.
6. So if a stock is worth $100. A person could buy on margin by paying $20
while the remaining $80 is covered by the stock broker.
7. This became a
, yet extremely
, decision.
Stock Market Trouble
1. Many people bought stocks in the 1920s and
one important thing…
2. The stock market always
like a
. One minute going
and the other minute going
3. Stock prices began to drop in
to
.
that people began
money.
4. When
of this hit the
everyone who had stock began to
stocks.
,
thus selling their
5. It was equivalent to yelling “
!” in a crowded
movie theater. Everyone panics and runs for the door.
Absolute Chaos
1. When the stocks began to be sold all
broke out.
2. Brokers who lent out money
repaid but could not.
3. People ran to the banks in hopes to get their
but the banks ran
4. In one day alone,
5. The market ended up losing $
to be
of money.
million stocks were sold
the entire stock market.
billion overall.
Crisis
1. With the stock market
banks
and
of money, the country entered the
.
2. Many people had no money left.
3. No
for a country =
and
.
Poverty and Unemployment
1. Poverty is when a person or family has
money to
or
themselves.
2. Unemployment means that a person is not
.
3. Both of these things
during the Great
Depression.
Hooverville
1. Many more became
time and built shantytowns which were homes built from
metal and wood.
2. These were
during this
living conditions.
3. The term “Hooverville” was named after US
Hoover who most Americans
Depression.
4. President Hoover did not do much to
for the
America
the situation.
America Enters the 1930s
1. Americans were had much
19
s but now in the 19
during the
s they had much
.
2. Things got
before they got
. The Depression began in 1929, the worst
came by 1933 and the Depression would
in 1939.
Writing to Capture the Depression
1. Check out the quote from a famous book below.
2. “Our people are good people; our people are kind people. Pray God some
day kind people won't all be poor.”
a. John Steinbeck, The Grapes of Wrath
3. What do you think this quote means?
Can Things Get Any Worse?
1. Unfortunately,
.
2. During the 1930s, and still today, Americans rely heavily upon the
for their source of
.
3. However, there was a severe
1930s in the Great Plains.
in the
Drought
1. A drought is when an area does not receive any
amount of time and
for a
up.
2. The Great Plains had one of the worst droughts which
up all of their
and fertile
.
3. That’s not too bad, right?
4. WRONG!
The Dust Bowl
1. After the drought came strong
2. The winds
.
up this dust and formed
clouds of dust that rolled
the United States.
3. This was known was the
.
4. The massive dust clouds would reach eastern
as
such
and
.
5. The
could only
even
would be so bad that you
3 feet in front of you. It was a darkness that
out the
light.
What Will Save America?
1. The country was on its knees looking for a way out of the
they were in.
2. Two things helped the U.S. recover:
a. A new
and his
ideas.
b. A major
.
c. We will learn about these things in upcoming lessons.