1. Warm-up:
Pick one of the causes of the great depression from yesterday that you think was the biggest cause and explain why…

2. The Stock Market Crash 1929

3. 1920s Business Cycle Employment & Factories & Production
Greater Demand
& More Jobs
Demand
Increase Supply
Production

4. Economic Danger Signs by 1929
Throughout the 1920s people were confident that business would bring continued prosperity
By the end of the decade the danger signs were there:
Uneven distribution of wealth
Overproduction of goods
Too much supply & too little demand
Personal debt / buying on the installment plan
Playing the stock market
Buying on margin / over-speculation
Hardship for farmers and workers

5. $10,000 & over
$5,000-$9,999
$2,000-$4,999
$1,999 & under
Income Distribution, 1929
Personal debt climbed from $48 billion in to over $72 billion by 1929
Population 121,767,000

7. Black Tuesday, October 29, 1929
Stock market peaked Sept. 3, 1929, then stocks started falling---it had been a “bull” market (stock prices staying up)
By Tuesday, October 29, 16.4 million shares were sold as investors raced to sell their stock shares (a “bear” market when stock prices are low)
Overall losses $30 billion

10. Activity
Write a paragraph in explanation: How did the stock market crash affect all Americans, even those who had not invested in the stock market?