The Great Gatsby = roaring 20’s New technological improvements were changing lifestyles in the United States. People were having their homes updated with electricity. Radios, refrigerators, electric appliances and telephones were becoming a part of the American way of life. Cars were becoming affordable for the middle class, thanks to Henry Ford. Many influential people felt that the good times were here to stay. ECONOMIC BOOM!!

Of Mice and Men = The Great Depression While people thought the good times would last forever, beginning in 1929 and throughout the 1930s, the economy experienced the worst economic downturn in U.S. history—the Great Depression. Depression… a period of severely declining economic activity spread across the economy normally visible in a decline in real GDP, real income, employment, industrial production, wholesale-retail credit and the loss of overall confidence in the economy. an era in America (and the rest of the world) in which there was great poverty it followed the Stock Market crash in 1929 and lasted until about 1939 (after the Second World War had begun) it was made worse by a terrible drought in parts of America, which destroyed a lot of crops Over time, people have suggested many causes for the Depression. Because economic conditions were so bad, and so many things happened between 1929- 1940, economists and historians still study the Great Depression to better understand its causes. A 25 percent unemployment rate means that one out of every four people was unemployed. Falling prices might seem like a good thing, but falling prices lead to reductions in incomes and contribute to rising unemployment. Declining GDP means that not as many goods and services are being produced. Indeed, the Great Depression was the most significant economic catastrophe in U.S. history. Why was the depression so bad… Millions of people were out of work In those days there were no state benefits like food stamps so without work you would starve People had to travel around the country to find work, sometimes living in tents or in old cars (migrant workers)

The business cycle Peak Expansion Contraction Expansion Trough The business cycle is the periodic but irregular up-and-down movements in economic activity, measured by changes in GDP (Gross Domestic Product—the value of goods and service produced in the country) and other economic factors Expansion = a speed-up in economic activity; low unemployment, increased prices (the more in demand the higher it is, and more people are able to afford it); it’s expanding (getting bigger and better) Peak = Last good moments of economic activity before it takes a turn for the worse. This is like the climax in a story. Contraction = slow-down of economic activity; high unemployment, declining prices (meaning less people are able to afford things); if the contraction is severe enough, it will become a recession. About a 6 month period aat least where the economy is in poor shape. Reduced trading, a fall in GDP (aka the value of goods), high unemployment, businesses go bankrupt, people can’t afford what was once in high demand, etc. You hear about periods of time where it seems like a lot of people are being let go from their job or losing their home, well that’s the result of a recession. Trough = Lowest point; economy hits rock bottom If a recession becomes bad enough, it becomes a depression. This happens during the trough phase. A depression is more severe than a recession, and is known to last for several years before finally beginning to recover. Of Mice and Men by Steinbeck happened during this time Trough

Riding the Rails At the height of the Great Depression, more than a quarter million teenagers were living on the road in America, many criss-crossing the country by illegally hopping freight trains. We are going to watch a documentary later this week that tells the story of ten of these teenage hobos -- from the reasons they left home to what they experienced -- all within the context of depression-era America.