The Beginning of the Great Depression (442-455) Reading GuideSource: http://www.gcsehistory.org.uk/modernworld/usa/problemsinagriculture.htmDuring the 1920s people who lived in the industrial cities and towns benefited from the effects of Mass Production. The use of assembly lines meant that the cost of many goods kept on falling which meant that more people could afford to buy them. This kick started the cycle of prosperity in these industrial towns and gave people jobs which meant that they could now afford to buy washing machines, vacuum cleaners, cars and radios

Farmers were also badly affected by the introduction of mass production. As farmers produced more produce using their new machines the price of their crops dropped. This was caused by producing more food than was needed by the population. This surplus of food was called overproduction. As farmers couldnt sell their produce prices dropped further which forced many farmers to borrow money from the banks and re-mortgage their land so that they could survive and not go bankrupt.

This situation was made worse by the introduction of Prohibition. In the past when the price of wheat had been too low they had used it to make whisky or Moon Shine. Prohibition, the banning of the production and drinking of alcohol, prevented them from doing this. In 1929, the price of wheat and barely hit an all time low. It was cheaper to burn the wheat as fuel than pay to transport it to market!

Read the above excerpt and answer the following question: What problems did Farmers face during the 1920s?

Read pp. 442- 455 and answer the following questions:

Why did the govt keep interests rate low during the 1920s?

Bull Market(Bear Market(There was a (Circle One:) Bull / Bear Market during the 1920s

Stock Speculation(

Problem with Stock Speculation(Margin Buying(During _________ Thursday (24 OCT 19____) and ____________ Tuesday ( 29 OCT 19____), the prices of stocks decreased sharply because people were (Circle One: ) buying / selling their stocks.

The Stock Market lost more $ in 1929 than it cost the US to be involved in what war?

How long did President Hoover think the economic problems in America were going to last?

What were the different causes of the Banking Crisis at the beginning of the Great Depression?

Why did Businesses fail in the beginning of the Great Depression?

How high did the unemployment rate rise in 1932?

Besides the Stock Market Crash, What caused the Great Depression?

- The ___________ economy was bad because of debts caused by _______________ and the global depression was made worse by the ____________________ Tariff(

- describe the distribution of income in America during the 1920s:

- consumer reliance on _________ (

- the business cycle theory states that there will be a ___________ after a prosperous economy

Life in the Great Depression (GD):

- even if you kept your job, what probably happened to your wages and hours?

- what happened to immigration during the GD?

- Why were so African American men fired during the GD:

- Bronx slave Market(

- Why did the percentage of women in the workforce actually increase during the 1930s?

- What fruit did many people try to sell in NYC in order to try to survive?

- What local organizations tried to help people during the GD?

- rent parties(

- breadlines(

- problems with malnutrition( __ out of every five kids in NYC suffered from malnutrition

- shantytowns (

These were also known as __________villes because

- The great irony of the GD: while people in cities were hungry, farmers had

- Why couldnt farmers pay their loans?

- What happened to marriage rates during the GD and why?

- What did people do to try to escape the misery of their life during the GD?