Notes for Great Depression January

30th, 2009

Economic Boom
The United States was not devastated by WWI. They did not need to repair
_________/______________. The country took part in an economic boom during a
time of peaceful prosperity. New technology led to new inventions during this
time. Henry Ford developed the _________-____ and between 1921-1930 miles
driven by travelers more than quadrupled. This led to the development of an
______________________ _______________.

Another invention, the _______________ was a staple in the American Home.

Most families owned one by the mid 1920s and could listen to news and tune
into their favorite shows.

Women got the right to vote with the passing of the _________ Amendment.
People had extra money in their pockets and spare time. They had time to go
out, and see concerts. This led to a time known as the __________________
Twenties. The United States felt it was in a good place. They even were in the
position to make loans and were known as the ______________ - nation to
many European countries.

Over Production
The nation simply produced too much. Companies were trying to expand, but
their _____________ could not keep up with their expansion rates. Prices went
up to cover the costs of _________________________. As a result the workers’
salary was cut and wages could not keep up with the increasing rate of
__________________________.

Farmers were taking out loans to buy new ______________________. They were
producing extra to try and cover the costs but the plan backfired and having
the surplus depleted their profits. They had a surplus because their supply
was higher than the _______________.
Un-employment
There was ________- __________ % unemployment in the United States during
1920-1930. Under President Hoover came the _____________- ______________
Act. This raised the tariff on many imported items. It was meant to
encourage the purchasing of ___________________ made goods. The Act proved
unsuccessful. After people had lost their jobs and money ran out they
became homeless. The name for towns constructed of ‘scrap shacks’ were
____________________.

Market Speculation
Stock was new and popular in the 1920s. People saw it as an opportunity to
_____________________ quick. Since the Stock Market kept going _______,
people assumed it would stay that way. Buying on _____________ was popular
because it allowed people to buy stocks on loan from brokers. After their
stocks made back the difference they could pay back the broker and keep a
slice of the profits for themselves. There was one severe danger associated
with buying on margin.
_____________________________________________________________________________
___________________________!
It was like trading money that wasn’t actually there and this hurt the Stock
Market in the end.

Stock Market Crash

On October _______, 1929 the Stock Market Crashed. It was known as
____________ Tuesday. The Stock Market lost _______ of its value. This triggered
a chain of events that lead to bank ___________. People rushed the banks
looking to collect their _____________, but the banks didn’t have enough.
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In Britain the Depression was known as the Great ____________.