Do Now: Great Depression Chart Homework: Page 707 #3-7 The Great Depression Do Now: Great Depression Chart Homework: Page 707 #3-7

Causes of the Great Depression CARELESS SPENDING OVERPRODUCTION WEAK BANKING SYSTEM Stock Market Crashes

HOW WILL WE REMEMBER THIS? COWS!!!!!!!!!!!!!!!!

CARELESS SPENDING Due to the “prosperity” of the 1920’s people had no real sense of wealth Nation’s wealth was distributed to only a small percentage of population

The chart shows that 99% of the population received a 9% increase in their income, while the top 1% saw their income rise by 75%. 1,230,000 Americans 121,770,000 Americans

Chart showing wages of unskilled workers Chart showing wages of unskilled workers. Notice how little the wages changed during the supposed prosperity of the 1920’s. WHY DO THINK WAGES STARTED GOING UP BEGINNING IN 1938? (WAR SPENDING AROUND THE WORLD)

Overproduction Farmers and factories produced too many goods Workers wages did not increase People could not afford rising prices of goods Due to lack of demand, factories had to lay people off

WEAK Banking Procedures Banks were unable to “back” up money people deposited Stock Market Crash caused nationwide panic and people tried to withdraw their money Banks went bankrupt and millions of people lost their life savings

Stock Market Crash Known as Black Tuesday People feared the prosperity of the 1920’s would be ending soon People began to sell their stocks Stock Prices began to drop and investors could not pay what they owed Panic selling of stocks causes market to crash on Tuesday, October 29, 1929