1. GREAT DEPRESSION

2. ESSENTIAL QUESTION What happens during an economic depression?

3. UNEMPLOYMENT RATE Number of people who can’t find work. 25% during Great Depression (1930’s). 5% during a healthy economy.

4. BANK FAILURES Unable to meet withdrawal demands. People may lose their savings.

5. BANKRUPTCY People or businesses or unable to pay debts.

6. FORECLOSURES People lose property, unable to pay mortgages.

7. OVERPRODUCTION Businesses make products nobody wants.

8. STAGNANT WAGES Pay does not keep up with expenses.

9. ESSENTIAL QUESTION What caused the Great Depression?

10. MARGIN People could borrow money to buy stock.

11. EASY CREDIT Loaning money to those who may not be able to pay it back.

12. NEW YORK STOCK EXCHANGE Place to buy and sell STOCK. Part ownership in a company.

13. SPECULATION Hope to buy low and sell high.

14. DOW JONES Used to measure the stock market.

15. BLACK TUESDAY When most stocks became worthless.

16. MARGIN CALL Forcing people to pay loans back. After Black Tuesday, most could not, forced to declare bankruptcy.

17. ESSENTIAL QUESTION How did the Great Depression affect America?

18. SHANYTOWNS Communities of homeless. No electricity, no heat, no water.

19. HOOVERVILLES Nickname for the shantytowns. Named after the President.

20. OKIES Families traveling to look for work, food, shelter.

21. HOBOS Single men traveling to find work, food, shelter. Often known to ride rails from city to city.

22. SOUP KITCHENS Places that gave free food to homeless. Example: Salvation Army.

23. ESSENTIAL QUESTION What was Republican President Hoover’s reaction to the Great Depression?

24. LAISSEZ-FAIRE Government takes ‘hands-off’ approach to the economy. Believe problem will go away.

25. FRANKLIN ROOSEVELT Democrat who defeated Hoover for President. Offered New Deal to fix the depression