22

“I’m in the Market – For You!”

By, George OlsenDate: February 9, 1930

Listen to the song while reading the lyrics and answer the question on the handout.

Point Earnings

Hold Tight Play it safeGo for the Gold!

Yeehaw!

Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Round 3 0 +1 +3 +4 +5 +6 +7 +8

After this round you may buy Bonanza Chips.

Two Chips will cost 10% of your total pointsThree Chips will cost 20% of your total points

Deduct the cost by adjusting the “Running Total” column.

Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Round 3 0 +1 +3 +4 +5 +6 +7 +8

Round 4 0 +1 +4 +5 +6 +7 +8 +9

If you have a Bonanza Chip multiply the points you earn in each round by:

x2 for 2 chipsx3 for 3 chips

Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Round 3 0 +1 +3 +4 +5 +6 +7 +8

Round 4 0 +1 +4 +5 +6 +7 +8 +9

Round 5 0 +1 +2 +3 +4 +5 +6 +7



Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Round 3 0 +1 +3 +4 +5 +6 +7 +8

Round 4 0 +1 +4 +5 +6 +7 +8 +9

Round 5 0 +1 +2 +3 +4 +5 +6 +7

Round 6 0 -10 -40 -40 -40 -40 -40 -40



Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Round 3 0 +1 +3 +4 +5 +6 +7 +8

Round 4 0 +1 +4 +5 +6 +7 +8 +9

Round 5 0 +1 +2 +3 +4 +5 +6 +7

Round 6 0 -10 -40 -40 -40 -40 -40 -40

Round 7 0 +1 -4 -5 -6 -8 -10 -20



Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Round 3 0 +1 +3 +4 +5 +6 +7 +8

Round 4 0 +1 +4 +5 +6 +7 +8 +9

Round 5 0 +1 +2 +3 +4 +5 +6 +7

Round 6 0 -10 -40 -40 -40 -40 -40 -40

Round 7 0 +1 -4 -5 -6 -8 -10 -20

Round 8 0 +1 -4 -5 -6 -8 -10 -20



Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Round 3 0 +1 +3 +4 +5 +6 +7 +8

Round 4 0 +1 +4 +5 +6 +7 +8 +9

Round 5 0 +1 +2 +3 +4 +5 +6 +7

Round 6 0 -10 -40 -40 -40 -40 -40 -40

Round 7 0 +1 -4 -5 -6 -8 -10 -20

Round 8 0 +1 -4 -5 -6 -8 -10 -20

Round 9 0 +1 -4 -5 -6 -8 -10 -20



Point Earnings


Round 1 0 +1 +2 +3 +4 +5 +6 +7

Round 2 0 +1 +2 +3 +4 +5 +6 +7

Round 3 0 +1 +3 +4 +5 +6 +7 +8

Round 4 0 +1 +4 +5 +6 +7 +8 +9

Round 5 0 +1 +2 +3 +4 +5 +6 +7

Round 6 0 -10 -40 -40 -40 -40 -40 -40

Round 7 0 +1 -4 -5 -6 -8 -10 -20

Round 8 0 +1 -4 -5 -6 -8 -10 -20

Round 9 0 +1 -4 -5 -6 -8 -10 -20

Round 10 0 -10 -4 -5 -6 -8 -10 -20

If you have a Bonanza Chip multiply the points you earn in each round by:x2 for 2 chipsx3 for 3 chips

Black Tuesday

The Market Crashes

“We have entered the age of Permanent Prosperity.” – Various Economists, 1920s

“I’m in the Market – For You!”

By, George OlsenDate: February 9, 1930

Listen to the song while reading the lyrics and answer the question on the handout.

Signs of Economic Troubles

Textile Industry Railroads Steel Industry

Faced increased competition from developing nations

New forms of transportation cut into its bottom line –Trucks, buses, and personal automobiles.

Decrease in demand → industry reached its peak during WWI

Signs of Economic Troubles

The boom industries of the 1920s begin to lose ground.

Automobile Construction Consumer Goods

People had purchased cars in droves – everyone that could afford one already had one.

Slowed by 25% - Housing construction is an economic indicator

If people aren’t buying/building new homes they don’t need to buy new appliances, equipment, and furniture

Trouble with Farms

• During WWI → farmers increased production to meet international demand for food.

• WWI Ends → demand for American crops decrease as Europeans grow their own again.

Trouble with Farms

Farmers kept growing crops →

Too much supply – weak demand = decrease in prices (prices decrease 50% or more)

Living on Credit

• American’s live beyond their means

• Availability of credit = people taking on too much debt

• People begin to lose their jobs → less money to buy consumer goods

Uneven Distribution of IncomeTop 1% Top 5% Average American Poorest 40%

Wealth increases by 75%

Wealth increased 30-35%

Incomes rose by 9%

Earned $150\peryear

1/10th the national average of $1500

Bull Market

• American’s raced to buy stocks

• 1929 – 3% of Americans (4 million) owned stocks.

Speculation

• As people kept buying stocks the values of those stocks became inflated.

• “Paper Money” – huge sums of money were generated – based on the value of stocks

Buying on Margin

• Paying a small percentage (10%) as a down payment and borrowing the rest.

• Brokers lent individuals money

Buying on Margin

• Stocks go up → repay debt and make a profit

• Stocks go down → you owe more than the value of the stock

Black Tuesday

OctoberSeptember

Investors lose confidence – stocks lose value

Stocks reach their peak value

Oct 24 – stock values decrease –investors begin to sell

Oct 29 – private investors and large corporations sell their stocks – the market PLUNGES!

Dow Jones Industrial Average

• A measure based on the stock prices of 30 companies that are representative of the market. – 1924 – DJIA → 81 points

– 1929 – DJIA → 381 points

– July 2, 1929 → 41 points

Companies that make up the DJIA todayAlcoaAmerican ExpressAT&TBoeingCaterpillarCoca-ColaCitigroupDisney

DuPontEastman KodakExxon MobilGeneral ElectricGeneral MotorsHewlett-PackardHome DepotHoneywellIBMIntel

International PaperJohnson & JohnsonMcDonald'sMerckMicrosoft3MJP MorganPhilip MorrisProctor & GambleSBC CommunicationsUnited TechWal-Mart

Causes of the Great Depression

1. Industrial base that was outdated – old equipment made industries less competitive.

2. Farm Sector Crisis – farmers overproduced leading to foreclosures


3.Availability of “Easy Credit” – too many people were living beyond their means

4.Unequal distribution of wealth – too little money in the hands of the working people, who were the vast majority of consumers.


• Federal Government’s role– Kept interest rates low; allowed individuals and

corporations to build up too much debt.

– Government did nothing to stop people from buying stocks on margin

– Lack of regulation of the market

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