Aim: How did the U.S. economy change in the late 1920’s?

Do Now: Copy Vocabulary into your notebook1. Stock: A portion of this as held by an

individual or group as an investment- (she owned $3000 worth of stock in Apple)

2. Margin: A sum deposited with a broker to cover the risk of loss on a transaction or account

3. Stock Market: The system for buying and selling units of ownership (called shares or stock ) in a corporation

4. Stock Market Crash of 1929: the event that, in the United States, signaled the beginning of the economic crisis known as the Great Depression

The U.S. Economy After WWI• America’s economy recovered quickly after WWI• The government was Republican and favoured

‘big business’• By the mid 1920s the economy was booming• US industry had been boosted by the war.• With more money to spend people invested on

the stock market.• Many Americans were confident about the

economy.

“a chicken in every pot and two cars in every garage”.

President Herbert Hoover

1929-1933

Activity #1• We will read through

Causes of the Great Depression together– Answer questions 1 & 2

on your own

Activity #2• We will read Buying Stock on Margin together– Answer the 3 questions that follow on your own

•American industry booms, prices of shares rise

•Investors sell their shares at higher prices and make huge profits.

•More people invest, pushing prices higher

•People buy ‘on the margin’

The Stock Market GameWith your partner…• We will read through the activity together• Work with your partner to complete the game

Stock Market Game (continued)

Stock Market Game (continued)

Summary• How did the U.S. economy change in the late

1920’s?

Which economic factor was a major cause of the Great

Depression?

(1) purchase of stocks on credit

(2) increases in taxes on business

(3) reduction of tariffs on imports

(4) failure to produce enough consumer goods

One of the major causes of the stock market crash of 1929 was

(1) excessive buying of stocks on margin

(2) overconsumption of goods and services

(3) failure of international banking systems

(4) low prices of stocks and bonds

Which conditions are most characteristic of an economic

depression?

(1) high unemployment and overproduction

(2) large business investments and low taxes

(3) too much money in circulation and high stock prices

(4) high employment and increased real estate investments

Which economic factor contributed most directly to the start of

the Great Depression?

(1) low worker productivity

(2) high income taxes

(3) decreasing tariff rates

(4) buying stocks on margin

Homework• Do a close reading [highlight/underline key

information and take notes in the margins] of Seeds of the 1929 Crash– Write a full 5 sentence summary of the article IN

YOUR OWN WORDS