Video: “Crash Course” – Great Depression, https://www. youtube Video: “Crash Course” – Great Depression, https://www.youtube.com/watch?v=GCQfMWAikyU – first 5 minutes ** Write down these prompts in your notes in preparation for a short video clip: Installment buying … Experiences of farmers … Commercial bankers … What made the Great Depression the “Great Depression” was massive … Margin buying … Single cause possibly … Deflation is …

Bank Failures ** 600 bank failures a year between 1921 - 1929

“The Great Crash” (1) Interest rates were low throughout the 1920’s Three long-term causes: (1) Interest rates were low throughout the 1920’s (2) “Buying on the margin” or borrowing to invest “The butcher, the baker, and the candlestick maker” … all were invested in the marketplace (3) Over-valued stocks & “the bubble”

“The Great Crash” “Black Tuesday,” Oct. 29, 1929 Panic in Selling of stocks Weakens Economy in Two Ways: Banks invested in the stock market, lost $$$$ (2) Weakens credit …

Banking Crisis (2) Mid-1920’s Low interest rates by Federal Reserve (1) Early 1920’s Expanding operations, taking out loans (4) 1930-31, Bank Runs (5) Early 1930’s, Fed. Makes Mistakes, does nothing (2) Mid-1920’s Low interest rates by Federal Reserve (3) Late-1920’s Stock market speculation, as commercial banks invest depositors $$$ Credit Freeze Banking Crisis

Problems w/ the Banking Industry “Bank Runs” https://www.youtube.com/watch?v=iPkJH6BT7dM

Deflation

Causes of the Great Depression (1) Uneven distribution of wealth (drop in consumer spending) Leads to (2) Falling Demand (3) Overproduction - Leads to (6) High tariffs (4) Low interest rates Leads to (5) Stock market speculation Deflation Unemployment

What do you notice in the chart? Global Depression What do you notice in the chart?

Gross Domestic Product ** In billions of dollars, a figure expressing how much the economy produced. 1928 97.4 1929 103.6 1930 91.2 1931 76.5 1932 58.7 1933 56.4