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The Great Depression (1929-1939) Causes and Contributing Factors (4 min. per slide)

Buying on Credit and Advertising Based on the 1920s ad, what you already know about advertising, and what was discussed in class…..how did advertising play a role in causing the Great Depression? Based on the 1920s ad, how did the use of installment plans contribute to the Great Depression? Where are consumers getting the money to buy on credit and what happens when they don‘t pay the money back?

Buying on Margin Based on the diagram, explain how Buying on Margin works. How did buying on Margin help contribute to the Great Depression?

Agriculture Using the graph, what would best explain the condition of farmers between 1916 and 1919? What about after 1919? What does the chart tell us about agriculture at the peak of the Great Depression in 1932-1933?

Industry What happened to industrial production from 1920-1921? What best accounts for this change? What problems did this change create? How would you characterize industrial production in the decade as a whole?

Real Estate What does the graph tell us about the value of real estate in the 1920s? What are the inherent problems with dramatic fluctuations in the value of real estate?

Tariffs What would account for tariffs being so high in the late 1800s? Why did tariff rates suddenly drop around 1913? Hint: something was passed that allowed for rates to be lowered. What happened to tariff rates in the 1920s and 1930s? Why is this a problem during a Global Depression?

Stock Market Crash Analyze and briefly explain what you see on this graph. What was the impact of the stock market crash on the U.S. economy and how did it contribute to the Great Depression?

Unemployment Analyze and briefly explain what you see on this graph. Be specific. What was the impact of the unemployment rate on the U.S. economy and how did it contribute to the Great Depression? What might explain the drop in the unemployment rate in the early 1940s?

Bank Failures Analyze and briefly explain what you see on this graph. What was the impact of bank failures on the U.S. economy and how did it contribute to the Great Depression?

Boom and Bust “Roaring ‘20s” “Depressed ‘30s” Boom Years – Unemployment usually below 4 percent Standard of living improved significantly Farmers did not share in the booming economy 40% of families both rural and urban had incomes in the poverty range