1. How did the Construction of the Panama Canal influence world trade? A. The canal made Panama the center of world trade. B. The canal slowed world trade. C. The canal split world trade into an eastern sphere and western sphere. D. The canal made trade routes much shorter. World Geography:

Explanation!  The Panama Canal is a man-made link between the Pacific and Atlantic Oceans. By linking these two bodies of water, trade routes were made much shorter because vessels no longer had to go around the southern tips of South America to cross from the Atlantic to the Pacific or vice-versa. This made trade easier and more efficient.

Standard 17 The student will analyze the causes and consequences of the Great Depression.

Great Depression Video

A

These factors - uneven wealth, rising debt, stock speculation, overproduction, and the hardships of farmers and workers - clearly signaled trouble in the economy

Uneven Prosperity  It was mainly the rich who got richer with the stock market.  Only a small population held most of the nation’s wealth

Buying on Credit  Another sign of danger was an increase in personal debt.  The installment plan made expensive items irresistible

Playing the Stock Market  Because of the rapid rise of the stock market, speculation and buying on margin became very popular.  Speculation — making high- risk investments in hopes of getting a high gain.  Buying on Margin — purchasing a stock for only a fraction of its price and borrowing the rest.  You were charged interest on the rest of the amount.  The money you owe could be called in at any time.

Overspeculation  During the 1920s, speculators bought stocks with borrowed money, then pledged those stocks as collateral to buy more stocks.  The stock market boom was based on borrowed money and optimism instead of real value.

Too Many Goods, Too Little Demand  By the late 1920s, the country’s warehouses held piles of unbought consumers goods

Trouble for Farmers  Falling farm prices made farmers unable to repay their debts for land and machinery.  About 6000 banks went out of business because of the farmers could not repay the loans.

Trouble for Workers  Industrial workers were still making very little money for the long number of hours that they were working.  Ex.: Women worked 56-hour weeks, earning 16 to 18 cents an hour.

The Stock Market Crashes: Black Tuesday

B

The Dust Bowl  It was a region in the Great Plains where drought and dust storms took place for much of the 1930s.  It devastated the farms and economies of the Midwest.  Caused by over farming and drought.

The Dust Bowl

C

The Crash Affects Millions  The Crash triggered the Great Depression.  It lasted from 1929 until the US entered WWII in  Millions of Americans lost their jobs, farms, and homes.  The Depression caused trouble throughout the world.

The Impact on Farmers and Workers  As income and profits fell, American factories began to close.  By 1932, 12 million people were unemployed.  About 25% of the workforce.

Hoovervilles  Hoovervilles were shanty towns, with shacks of tar paper, cardboard, or scrap metal.  The name mocked President Hoover, whom many people blamed for the depression.

The Election of 1932  Franklin Delano Roosevelt (FDR) was the Democrat.  Herbert Hoover was the Republican.  FDR won the presidency by a huge margin of 7 million popular votes.

 The Great Depression occurred, in part, because farmers and other producers were filling the market place with more products than consumers could buy. This caused a drastic fall in prices that eventually drove many out of business and hurt the stock market. Such a phenomenon is called A. Underconsumption. B. Overproduction. C. A stock market crash. D. Consumerism.

 What caused the Dust Bowl? A. Farm foreclosures B. Over farming and drought C. Urban unemployment D. Lack of government intervention

 The greatest economic crisis in US history is known as A. Overproduction B. The Dust Bowl C. The Great Depression D. Black Tuesday

 Hoovervilles can be BEST described as A. Shantytowns where displaced people lived during the Great Depression. B. Small cities named in honor of President Hoover. C. Parts of a larger reform bill to improve housing in America. D. Bank notes issued during the Depression in place of stock.

The Great Depression

Intense Drought Contributed to the Dust Bowl

Hard Times for Everyone