Warm-up: Pick one of the causes of the great depression from yesterday that you think was the biggest cause and explain why…

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Warm-up: Pick one of the causes of the great depression from yesterday that you think was the biggest cause and explain why…

The Stock Market Crash 1929

1920s Business Cycle Employment & Factories & Production Greater Demand & More Jobs Demand Increase Supply Production

Economic Danger Signs by 1929 Throughout the 1920s people were confident that business would bring continued prosperity By the end of the decade the danger signs were there: Uneven distribution of wealth Overproduction of goods Too much supply & too little demand Personal debt / buying on the installment plan Playing the stock market Buying on margin / over-speculation Hardship for farmers and workers

$10,000 & over $5,000-$9,999 $2,000-$4,999 $1,999 & under Income Distribution, 1929 Personal debt climbed from $48 billion in 1920 to over $72 billion by 1929 Population 121,767,000

Black Tuesday, October 29, 1929 Stock market peaked Sept. 3, 1929, then stocks started falling---it had been a “bull” market (stock prices staying up) By Tuesday, October 29, 16.4 million shares were sold as investors raced to sell their stock shares (a “bear” market when stock prices are low) Overall losses $30 billion

Activity Write a paragraph in explanation: How did the stock market crash affect all Americans, even those who had not invested in the stock market?