Unit 6 Day 10 (Black Tuesday) Quote: “There is no cause to worry. The high tide of prosperity will continue.” - Andrew W. Mellon, Secretary of the Treasury.

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Presentation transcript:

Unit 6 Day 10 (Black Tuesday) Quote: “There is no cause to worry. The high tide of prosperity will continue.” - Andrew W. Mellon, Secretary of the Treasury Focus Question(s): How did consumerism transform the American economy in the 1920’s? Justify. Specified Content: Farmer problems, credit, Stock Market speculation, Black Tuesday State Standards: Strand 1 Concept 8 PO 1 a.

Black Tuesday During World War One, farmers borrowed large amounts of money to buy more land and new farming equipment. They hoped to make huge profits by producing more food.

When the war ended there was a large surplus of food. This drove the prices of the crops down and the farmers began to fall behind on their loans causing many farmers to lose their farms.

Many Americans were also living beyond their means. They were living on credit and having a hard time paying off their debts.

Many Americans also began investing in the Stock Market. Investors began buying stock with little knowledge of the companies they were investing in and used borrowed money to buy more stock.

By September 1929, the Stock Market began to peak and prices began to decline. On October 29 th (Black Tuesday), the market crashed and $30 billion disappeared. The Great Depression had begun.