LEARNING TARGETS Students will be able to explain the impact the decade of the 1920s had on the Great Depression. Students will be able to analyze.

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LEARNING TARGETS Students will be able to explain the impact the decade of the 1920s had on the Great Depression. Students will be able to analyze the reasons the Great Depression started.

1. CONSUMER SOCIETY & OPTIMISM OF 20S  Easy credit, advertising

2.INTERNATIONAL RELATIONS U.S. demanded payment of WWI loans U.S. taxed European goods  Europeans wouldn’t buy American 1. Loans to Allies During WWI= $7 billion dollars 2. Loans to Help Allies Rebuild = $3 billion dollars Destruction in Abbeville, France at end of WWI

3. COOLIDGE--INEFFECTIVE LEADER supported “Laissez-faire” gov’t should stay out of economics)

4.DIFFERENCES IN INCOME 42% below poverty level, 1% had 30% of wealth

5.OVERPRODUCTION Farmers expanded because of WWI Factories produced more goods Not enough buyers 1921 Tractor WWI propaganda to encourage farmers

6.INFLATED STOCK MARKET Speculation (“get rich quick”) Buying on margin (borrowing) 1928 Busy Trading Day in New York

7. STOCK MARKET CRASH: OCT. 29, 1929 Panicked selling caused prices to lower “Black Tuesday:” 16 million shares sold, $15 billion dollar loss

CLOSING REFLECTION Cover your notes. Write down as much as you can remember about why the decade of the 1920s led to the Great Depression. Share if time.