The Economic Collapse - Mrs. Cappiello's History Class



The Economic Collapse – The Great Depression Notes

______________________________

The years following WWI were known as the ____________ ________________ Americans believed the US was a place of _____________, _________________ ___________________, and __________________________.

This __________________ ___________________affects America in many ways:

• Americans were ________________ ____________ _________________.

• Americans had more money to spend on ______________________ ___________, especially ________________________.

• ____________________ ____________________ helped factories to produce more.

• ______________ _______________ was at an all time high and Americans were urged to invest in it.

By late 1929, __________________ in the US economy began to show:

• _________________________ was on the ____________.

• ________________ were ____________________ their _______________.

• __________________ prices were _________________________

• Number of people living in ________________________ was _____________________.

When the ________________ ______________ took a _______________ on ___________________ 29, _________, it launched the _______________ and most ____________________ ____________________ in US history.

Contrary to popular belief, the ______________ ____________ _____________ _______ ______ __________________ the 10 year long Great Depression. While historians are still debating on the exact causes of the Great Depression, they generally agree on _____ ________ ____________:

1. ________________ domestic and international ________________ _____________.

2. ___________________ stock ______________________

3. _____________ and __________________ __________________ institutions

4. ______________________ of goods

5. ________________ of the _______________________ industry

6. __________________ distribution of __________________

______________________________________

The Republican leaders (presidents and politicians) during the twenties implemented many pro-________________ policies based on a doctrine of trickle-down economics and a conservative approach to international economics.

In other words, they believed policies that _______________________ ___________________ people would eventually ___________________ ______ Americans.

The _________________ would “_______________ ______________” from the _____________ class to the ___________ and ______________ classes. In the end, trickle-down economics simply __________________ the _________ between rich and poor.

During ____________, the US __________ over $_____ ________________ to ____________________ countries. After the war, these countries were in ruin and ________________ _____________________ their debts to ______________. They asked to have the loans forgiven or to have the amount they owed decreased, but Republican leaders refused. This caused those countries to fall further into debt and they began to default on their loans. We also started to tax the goods they imported to America which also cost them money, and they quickly fell into a depression in Europe.

___________________________________

______________________ —a person or organization makes a ____________ ____________________ in the hope of making a quick, large profit.

Speculation was _____________________ in the 1920s. In the beginning, many investors speculated on real estate – California and Florida. Both ________________ and them amount to sale exceeded the demand for new housing. Also, schemes – investors selling to investors. __________________followed by _____________________.

When real estate went belly-up, investors turned to the stock market. ___________________ investors __________________ _________________ stocks. Economic analysts ______________________ the market was headed for a _________. Even Hoover warned investors to curb their speculation and began selling his own stock for fear that “__________________ __________ ___________ ________ ______________.”

______________________________________________________

_____________ _____________ -- market in which the _______________ are ____________________ _____________.

Analysts warnings that the bull market could not continue made some _________________ _______________. In _____________, many began ___________________ their _______________. As investors kept _____________________, stocks _____________ ______________. As stocks fell, company production slowed which cause additional drops.

On October _______ investors sold stocks at a loss of over $_____ _______________.

“________________ _______________” – orders to sell at any price swamped the market. In ______________, _______________ lost _________________ that had taken a _________________ to make. The Great Depression had officially begun.

The stock market crash triggered a _________________ _______________. The banks were unstable due, in part, to ________________ ___________ – “_____________ ______________” – Republican policies what allowed them to over extend credit to stock investors and brokers. To Republicans, __________________ should ________ __________________ or impose on commerce.

__________ _________________ after the crash and their customers had ___________ ________________ of getting their _______________ back. ___________________ of families were _______________________ ____________________________. By 1932, over ¼ of the nation’s banks had closed.

_______________________________

Consumer _______________________ for goods _______________ ____________ was ________________ and American eagerly pursued material goods in an effort to forget the horrors of war. For a while, __________________________ ______________________ soared. By 1929, the market was ____________________ with goods few Americans could afford to buy.

Agriculture had and __________________ _________________________. During WWI, farmers were supplying food for the US army, European nations, and the US citizens. Once Europe resumed their own production, farmers had a surplus or excess of foods.

__________________________________

_______________________ had historically been the __________________________ of the American ________________. By 1929, agriculture was in ______________ __________________. ________________ _____________________ heavily from ____________during the twenties to __________ for _______, technologically advanced _______________. As farmers became ____________to ___________ surplus ____________, they _________________ ___________ their ____________, which included their _____________________.

Eventually, some ___________________ their ______________ to _______________________. Then banks would try to auction the farm to recover their money, but many couldn’t afford to buy them and often, ______________ took a ______________. In 1929, many banks collapsed because of farmers’ economic problems and the stock market crash.

As the depression deepened, _______________________ _____________________ ___________________. To make matters worse, farmers in the _______ and _______________________ US were hit with a ____________________. It turned the soil to _____________ that swept across the plains in _________________ _______________. This region became known as the “____________ _______________”. Over 1 _________________ families ________________ their farms from 1930-1934.

_________________ who were fleeing the Dust Bowl ___________________ west to _______________________. They were known as “______________”. Many lived in makeshift _____________________ and shanties on the outskirts of the city limits because they _____________________ __________________ ____________________.

The problems that farmers faced put a dramatic face to the gap between America’s “haves” and “have-nots”.

_______________________________________

Even though statistics show Americans were more prosperous than ever during the twenties, ______________ of the country’s __________________ was in the hands of a ___________ __________________ at the top of the economic pyramid. As the decade wore on, the ______ between _______ and ___________________ ________________ wider and distribution of wealth grew more ______________. In 1929, _______ of Americans _____________________ over ________ of the country’s __________________. ________% lived ______________ the _________________________ level of $2,000 a year. Many minorities were even poorer. The average American say a 9% increase in income during the 20s while the wealthy say a 75% increase in income. The ____________ were ______________ __________________.

The Great Depression which lasted well into the 30s arose from a series of complex and interconnected conditions:

1. _______________ of trickle-down ______________________.

2. _______________ of ___________________________ commerce

3. ______________ evaluation of __________________

4. Unregulated an _______________ _________________________ policies

5. Widespread ________________________________ of goods

6. The collapse of ______________________________

7. The _________________________ distribution of ________________________

8. American’s _______________ of ___________________ power

The _________________________ ________________ ____________________ Americans __________________ and _____________________ for decades afterwards.

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