Timeline Questions p. 506-07

1. What single event led to the Great Depression?

2. What famous building was completed at the height of the depression and what year?

3. What were conditions like in the Soviet Union in 1932?

MAP:

4. What region of the United States was most heavily affected by the drought that caused the Dust Bowl?

The Stock Market Crash

1929

1920s Business Cycle

Employment & Factories & Production

Production

Demand

Greater Demand & More Jobs

Increase Supply

• 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

Economic Danger Signs by 1929

• Personal debt climbed from $48 billion in 1920 to over $72 billion by 1929

• Population 121,767,000

Income Distribution, 1929

$10,000 & over

$5,000-$9,999

$2,000-$4,999

$1,999 & under

• 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

Black Tuesday, October 29, 1929

Write a paragraph in explanation:

How did the stock market crash affect all Americans, even those who had not invested in the stock market?

Activity