Download Crash and Great Depression Notes

Unit 9: Boom to Bust 1920 - 1939
Topic 2: The Aftermath of the
“Black Tuesday” Stock Market Crash
In the U.S., the 1920s was a decade of
prosperity
• Bold ______________ ideas
• New _______________ available to
broad audiences
• CONFIDENCE in the U.S.
___________________
•
•
•
•
•
•
How did the U.S. Economy grow so much in
the 1920s?
 Lots of new inventions
– _____________________
– _________________
–
Telephones, Telegraphs
Lots of supply, not enough _____________
Solution?
________________!
60% of Americans financed _________________ in the 1920s
80% of Americans financed ____________ in the 1920s
Created an ______________ demand (people were imagining they had money that
they _________________)!
The Stock Market in the 1920s
A stock is a _____________________
of a company.
The value of stock is based on
confidence in the market, not the
______________ profits of that one
company.
The overall value of stock
___________ 120% from 1925-1929.
The Upward Spiral
(or so it seemed…)
Americans ________________ money not just
to buy goods, but also
____________________.
Draw the “upward” cycle
Economic Danger Signs of the 1920s
•
•
•
•
•
•
•
Name: _________________________
Block: _________________
Date:__________________
_________________________ on
stocks with borrowed money
Large ___________ between the rich
and poor
Post-WWI _____________________
economic slump
What happened to consumers?
Consumers were afraid of economic
failure, so they stopped
______________money.
Businesses lost the ____________they
relied on.
____________________________.
•
•
Black Tuesday
As ____________ spread about inflated
stock value, Americans started selling.
Greatest _____________________ in
U.S. History on October 29,________
A wave of panic-selling hit!
What happened to workers?
•
As businesses lost money, ____________
were lowered and many workers were
laid off or fired.
• Many businesses couldn’t hire the
______________________ because they
didn’t have the funds to pay salaries.
24% - 50% of Americans were unemployed at
the peak of the Great Depression.
The Downward Spiral (draw/describe)
What happened to homeowners?
As homeowners lost their jobs, they
couldn’t afford to pay their
___________________.
• Banks foreclosed on _____________.
• Homeowners became _____________.
•
•
•
•
Bank Closings
With so many mortgage
____________________, banks could
not return depositors’ money
Banks ______________.
Depositors lost everything.
On an international scale…
•
During WWI and after the war, billions of dollars were loaned to ___________ Allies
•
•
•
•
Allies struggled after ____________ and couldn’t repay the money
The U.S. increased tariffs to gain the $$ back in trade (________________ Tariff)
European countries retaliated with tariffs as well – BAD IDEAS
How now would you
provide for your family?
Many moved _________ in search of
work, afterall, farmers will need
workers as long as people need to eat!
EXCEPT…
•
•
Effects of the Dust Bowl
•
•
Farm ____________________
Food became ______________.
The Great Depression
•
•
•
•
Is it time for a change?
The Dust Bowl
Caused by bad farming practices in the
1920’s (lack of crop ______________
and overplowing)
Drought and wind caused the land to be
________________
People were desperate.
Americans blamed _______________
_________________rates at an all-time
high
It seemed there was no end in sight.
Presidential election of 1932
_____________________ vs. ____________________________