Period 1, 5, & 6 We will examine the causes of the Great Depression

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Causes of the Great Depression

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Period 1, 5, & 6 We will examine the causes of the Great Depression Complete Chapter 14 What and Where Go over homework Chapter 14.1 Notes Causes of Great Depression

Chapter 14.1 Notes Industry Basic industries barely made a profit (railroads, steel) Coal mining had to compete with oil and natural gas The number of new houses being built declined

Farmers - Increased output during the war - Demand/ prices fell for crops after the war - The government started price- supports – government would buy surplus crops guaranteed prices

Consumers Americans bought less Rising prices Stagnant wages Credit Americans bought goods on credit Buy now pay later Many people had trouble paying off their debts

Uneven Distribution of Wealth - Wealthiest 1 % income grew by 75% - 70% of the nation’s families earned less than $2,500

Stock Market Crash People speculated Bought stock on margin Paid a small percentage of stocks value and borrowed the rest Black Tuesday 16.4 Million shares sold By November $30 Billion in value had been lost