1. THE GREAT DEPRESSION FROM BOOM TO BUST “Brother, can you spare a dime?”

2. Buy Now, Pay Later  People wanted the new products of the 1920s, but didn’t always have the cash to pay for them  Credit developed to allow people to “buy now, pay later”  Consumers built up so much debt because they kept trying to buy all the new products  Factories overproduced  Consumers couldn’t buy everything

3. The Stock Market & Credit  Speculation: investing in risky businesses in hopes of making a large profit  On margin: paying a small percentage of the total price of a stock with the “promise to pay” the rest at a later date  It was the equivalent of buying stocks on “credit”

4. The End of Prosperity  Black Thursday: October 23, 1929, stock prices dropped, and within hours, investors lost more than $5 billion.  Black Tuesday: October 29, 1929 people tried to go to the bank and withdraw any/all money they had.  Long lines, bank doors were locked, banks had to close because they didn’t have the cash to give out.  This was the start of the Great DepressionGreat Depression

5. The Great Depression  Worst and longest economic collapse in the history of the modern industrial world  Lasted until the early 1940s  Spread from the US to the rest of the world, impacting all industrial countries.  Decline in the production & sale of goods  Rise in unemployment  Businesses and banks had to close  People lost jobs, savings, homes  Many people depended on charity