1. The Great Depression Begins…
Today’s Goals:
1.) REVIEW: Why was there an economic boom in the 1920s? (LACK PANTS)
2.) How can each factor contributing to the economic boom in the 20s also contribute to the reasons why the economy will crash in 1929?
Created by Mrs. Bedard PVMHS

2. The Great Depression Begins…
Main Idea:
Many living in the 1920s thought that
economic prosperity would go on forever…
However, there were many warning
signs that economic troubles
were on the horizon.
Created by Mrs. Bedard PVMHS

3. Created by Mrs. Bedard PVMHS
From BOOM to BUST!
Created by Mrs. Bedard PVMHS

4. Created by Mrs. Bedard PVMHS
prosperity
depression
From BOOM to BUST!
Created by Mrs. Bedard PVMHS

5. The Great Depression Begins…
So remind me what you learned last week…
Why was there an economic boom in the 1920s?
Created by Mrs. Bedard PVMHS

6. 1.) Why was there an economic Boom in the 1920s?
LACK
PANTS
Created by Mrs. Bedard PVMHS

7. 1.) Why was there an economic Boom in the 1920s?
Laissez-Faire
Position #1
Advertising
Assembly Line
LACK
PANTS
New Products
Credit
Tariffs
Knowledge/Tech
Share Confidence
Created by Mrs. Bedard PVMHS

8. 1.) Why was there an economic Boom in the 1920s?
REASON
Definition
GOOD because
Laissez-Faire
No gov. regulations
On business
Business can do what it
needs to in order to make $
Assembly Line
Breaks big tasks into
small fast tasks.
Can make more products
faster = lowers prices
LACK
Credit
Buy now pay later
Allows consumers to
buy more products
Knowledge/Tech
Ex: electricity
Businesses had tech to help
produce faster. And learned
how to run businesses better.
Created by Mrs. Bedard PVMHS

9. 1.) Why was there an economic Boom in the 1920s?
REASON
Definition
GOOD because
Position #1 in
the world
After WWI we were
the richest/powerful
Every other nation wants to do
business with us. (TRADE)
Advertizing
Mass media designed
to get you to buy
Brings more consumers out and
encourages spending.
New Products
Cars, Radios, time
saving appliances
People BUY…Businesses make $
JOBS!
PANTS
Tariff
Tax on foreign goods
makes them expensive
People buy the cheaper American
made goods.
Stock Market
Confidence
Share /Stock = owning
a part of a company
People invest money = businesses
have $ to pay wages/make stuff
Created by Mrs. Bedard PVMHS

10. Created by Mrs. Bedard PVMHS
2.) How can each factor contributing to the economic boom
also contribute to the reasons why the economy will
crash in 1929?
Created by Mrs. Bedard PVMHS

11. 2.) How can LACK PANTS can also cause a BUST?
REASON
Definition
BAD because
Laissez-Faire
No gov. regulations
On business
Business could take advantage,
form trusts, raise prices, etc.
Assembly Line
Breaks big tasks into
small fast tasks.
If a business makes too much
too fast = deflation of prices
LACK
Credit
Buy now pay later
People spend too much
go into debt!
Knowledge/Tech
Ex: electricity
If a business makes too much
too fast = deflation of prices
Created by Mrs. Bedard PVMHS

12. 2.) How can LACK PANTS can also cause a BUST?
REASON
Definition
BAD because
Position #1 in
the world
After WWI we were
the richest/powerful
We are a target…other countries
may want to hurt us.
Advertizing
Mass media designed
to get you to buy
Encourages us to buy stuff
we don’t always need!
New Products
Cars, Radios, time
saving appliances
Old products don’t sell. Makes
You think you need it.
PANTS
Tariff
Tax on foreign goods
makes them expensive
If we make foreign goods
expensive,
won’t other nations to this to us?
Share
Confidence
Share /Stock = owning
a part of a company
What if we invest in companies
that don’t last? = we lose our $
Created by Mrs. Bedard PVMHS