1. Do Now: Great Depression Chart Homework: Page 707 #3-7
The Great Depression
Do Now: Great Depression Chart
Homework: Page 707 #3-7

2. Causes of the Great Depression
CARELESS
SPENDING
OVERPRODUCTION
WEAK BANKING
SYSTEM
Stock Market
Crashes

3. HOW WILL WE REMEMBER THIS?
COWS!!!!!!!!!!!!!!!!

4. CARELESS SPENDING
Due to the “prosperity” of the 1920’s people had no real sense of wealth
Nation’s wealth was distributed to only a small percentage of population

5. The chart shows that 99% of the population received a 9% increase in their income, while the top 1% saw their income rise by 75%.
1,230,000 Americans
121,770,000 Americans

6. Chart showing wages of unskilled workers
Chart showing wages of unskilled workers. Notice how little the wages changed during the supposed prosperity of the 1920’s.
WHY DO THINK WAGES STARTED GOING UP BEGINNING IN 1938? (WAR SPENDING AROUND THE WORLD)

7. Overproduction Farmers and factories produced too many goods
Workers wages did not increase
People could not afford rising prices of goods
Due to lack of demand, factories had to lay people off

8. WEAK Banking Procedures
Banks were unable to “back” up money people deposited
Stock Market Crash caused nationwide panic and people tried to withdraw their money
Banks went bankrupt and millions of people lost their life savings

9. Stock Market Crash Known as Black Tuesday
People feared the prosperity of the 1920’s would be ending soon
People began to sell their stocks
Stock Prices began to drop and investors could not pay what they owed
Panic selling of stocks causes market to crash on Tuesday, October 29, 1929