Post on 18-Jan-2018
Topics:Recap of the 1920’sStock Market CrashGreat Depression
Dust Bowl
World War I is over! Let’s
celebrate!! Life in America is great!
Roaring 20’s!
19th AmendmentWomen can vote!
The 1920’swere great
times in America!
The Harlem Renaissance
Louis Armstrong
Langston Hughes
Henry FordHe made theautomobile
affordable formost people!assembly lines
Model T
CharlesLindbergh
Lindbergh changedaviation history byflying solo acrossthe Atlantic Ocean! Heproved it could be done!
Times are good! Let’s go to the
ballpark and watch Babe hit a homer!
Let’s go, Babe!
1920’sThe radiobecame a
main form ofentertainment.
No, not in cars....inhomes!
Dant, Dant, Dant, Daaaaaa.......
Yes, WWI was over.
Yes, it was time to celebrate.
But, the American economy was in TROUBLE!
1929
StockMarketCrash!
What is a stock?
What do you know about stocks and their relationship to companies such as the ones below?
Stocks are shares of ownershipin a company.
Following World
War I.
Following WWI, people were buying
and selling sto
cks for high amounts o
f money.
1929
People who were rich one day, were poor the next.
The Stock Market Crash of 1929triggered the GREAT DEPRESSION.
Banks and businesses were failing. Peoplecould not find jobs. This was a dismaltime in America’s history.
Hungry and homeless people roamed the city streets.
Thousands of people linedup at soup kitchens run bycharities. A bowl of hot soupand a piece of bread might bethe only meal they wouldget in an entire day.
Farmers had a very difficult time during the Depression years, especiallyfarmers in the Midwest states.
Before WWI, farmers, in the Great Plains, had plowed up millions of acres of grassland so they could plant wheat.
Before WWI, farmers, in the Great Plains, had plowed up millions of acres of grassland so they could plant wheat.
But, there was a huge drought in the Great Plains. This caused soil erosion (Put on your science caps!). The soil would blow all over the place and form huge clouds of dust!
The dust covered everything! It coveredfences, houses, barns, roads, and cars!
This area of the country becameknown as the “Dust Bowl.”
Poor Farmers packed up everything they had and drove west. They hoped tofind work in the farmlands of California.
Something had to bedone to help Americans.They were in the worstfinancial circumstancesin history! What do youthink could solve this problem?
• The stock market was only one cause of the Great Depression, however.
• Unequal income distribution was another problem. While businesses showed great profits during the 1920s, workers got only a small portion of this wealth in their low wages. People who had small incomes therefore bought merchandise on credit. Advertisers pushed them to do so with the slogan "Buy now, pay later." Manyconsumers accumulated so much debt that they could no longer purchase products, leading to a slowing of manufacturing because there was a backlog of merchandise.
• During the 1920s American farmers in the Midwest had been suffering from drought conditions. Others had geared up for high production, but after the end of World War I (1914–18) they found that the international market was overstocked and prices fell so low that they could not make a profit on their crops.
• The banking industry also made mistakes in too freely lending money, especially to foreign countries trying to rebuild after the war. These countries had trouble repaying their debts.
• To make matters worse, the United States (and other industrialized countries) charged high import taxes on goods that other countries offered for sale. These taxes prevented countries from selling the goods they needed to earn the money to repay loans from U.S. banks.
For Further Discussion - Extra information:
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