1. USHC Standard 6: The student will demonstrate an understanding of the conflict between traditionalism and progressivism in the 1920s and the economic collapse and the political response to the economic crisis in the 1930s.
USHC Standard 6.3: Explain the causes and consequences of the Great Depression, including the disparities in income and wealth distribution; the collapse of the farm economy and the effects of the Dust Bowl; limited governmental regulation; taxes, investment; and stock market speculation; policies of the federal government and the Federal Reserve System; and the effects of the Depression on the people.

2. The Great Depression

3. Black Tuesday

4. The Great Depression
The basic problems in the economy, leading to the depression, were declining demand and overproduction

5. The Great Depression

6. POVERTY AND DEBT HAVE A CYCLICAL NATURE
The Great Depression
POVERTY AND DEBT HAVE A CYCLICAL NATURE

7. Cause: Automobile sales declined.
Cause: Industry slowed
Cause: Lower wages and unemployment
Cause: less demand for textiles, oil, steel and rubber
Which led to

8. The Great Depression
The farm economy in the U.S. collapsed during the 1920’s
Farmers who had prospered in war years now faced problems:
International competition
Depressed prices
Debts
Taxes

9. The Great Depression
Republican administrations in the 1920’s limited government regulation on “Big Business”
Corporations became increasingly powerful
The tariff was raised
The wealthy received tax breaks on their income tax

10. The Great Depression
Stock market speculation and the “get rich quick” mentality led to inflated stock values and eventually to a crash
Buying on the margin: Investors were allowed to borrow on the paper value of their stock, in order to buy more stock

11. THIS SYMBOLIZED THE END OF THE FALSE
The Great Depression
Prominent bankers helped to prop up the market for several days, but public confidence was shattered
“Black Tuesday”: Oct. 29, 1929; the market experienced the greatest crash in its history
THIS SYMBOLIZED THE END OF THE FALSE
PROSPERITY OF THE 1920’s