· Web viewCauses of the Great Depression Using textbook pages 254-257, take notes on the left...
Transcript of · Web viewCauses of the Great Depression Using textbook pages 254-257, take notes on the left...
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Causes of the Great DepressionUsing textbook pages 254-257, take notes on the left about what people thought (above water) was happening and what was
really (under water) happening. Then, with these rules of investing in mind, finish the statements on the right.
FarmingRule #1: What goes up, must
come down
Rule #2: There is risk involved
when you guess
Rule #3: There is significant risk involved when
you have to borrow in order
to guess
Rule #4: It’s only worth what
someone else is willing to pay for
it
Crop prices rose sharply during WWI, so when the war ended…
However during WWI, farmers guessed…..
So they…
And based on that guess, farmers also borrowed money to….
So, even though farmers had…
even before the GD started, many couldn’t…
Reasonably and steadily priced food is good for everyone because …
But too cheap of food is bad for everyone because…
Stock MarketRule #1: What goes up, must
come down
Rule #2: There is risk involved
when you guess
Rule #3: There is significant risk involved when
you have to borrow in order
to guess
Rule #4: It’s only worth what
someone else is willing to pay for
it
The stock market grew sharply during the 1920s, so by the end of the decade…
However, during the 1920s, the stock market had steady growth, so investor guessed…
So they kept…
And based on that guess, investors also borrowed money to….
So, even though investors had…
once the GD started, they couldn’t…
People investing some of their money in the stock market is good because …
But too many people investing too much money is bad for everyone because…
Income Distribution Rule #1: What goes up, must
come down
Rule #2: There is risk involved
when you guess
Rule #3: There is significant risk involved when
you have to borrow in order
to guess
Rule #4: It’s only worth what
someone else is willing to pay for
it
During the 1920s, the wealthy were becoming wealthier, which meant the poor were...
However, business/factory owners guessed the economy would continue to…
So they…
And based on that guess, many business/factory owners also borrowed money to…
Even though business/factory owners had …
once the GD started, they couldn’t…
Some people having some wealth is good for everyone because …
But too few people having too much wealth is bad for everyone because…
Credit & SpendingRule #1: What goes up, must
come down
Rule #2: There is risk involved
when you guess
Rule #3: There is significant risk involved when
you have to borrow in order
to guess
Rule #4: It’s only worth what
someone else is willing to pay for
it
For most of the 1920s, employment was high, so people…
During the 1920s, jobs and income seemed so steady, people guessed….
So they didn’t as much…
And based on that guess, many people borrowed money to…
Even though people had…
once the GD started, they couldn’t…
People borrowing some money good for everyone because …
But too many people borrowing too much money is bad for everyone because…