The Great Depression Begins… Today’s Goals: 1.) REVIEW: Why was there an economic boom in the 1920s? (LACK PANTS) 2.) How can each factor contributing to the economic boom in the 20s also contribute to the reasons why the economy will crash in 1929? Created by Mrs. Bedard PVMHS

The Great Depression Begins… Main Idea: Many living in the 1920s thought that economic prosperity would go on forever… However, there were many warning signs that economic troubles were on the horizon. Created by Mrs. Bedard PVMHS

Created by Mrs. Bedard PVMHS 1920-1929 1929-1941 From BOOM to BUST! Created by Mrs. Bedard PVMHS

Created by Mrs. Bedard PVMHS 1920-1929 prosperity 1929-1941 depression From BOOM to BUST! Created by Mrs. Bedard PVMHS

The Great Depression Begins… So remind me what you learned last week… Why was there an economic boom in the 1920s? Created by Mrs. Bedard PVMHS

1.) Why was there an economic Boom in the 1920s? LACK PANTS Created by Mrs. Bedard PVMHS

1.) Why was there an economic Boom in the 1920s? Laissez-Faire Position #1 Advertising Assembly Line LACK PANTS New Products Credit Tariffs Knowledge/Tech Share Confidence Created by Mrs. Bedard PVMHS

1.) Why was there an economic Boom in the 1920s? REASON Definition GOOD because Laissez-Faire No gov. regulations On business Business can do what it needs to in order to make $ Assembly Line Breaks big tasks into small fast tasks. Can make more products faster = lowers prices LACK Credit Buy now pay later Allows consumers to buy more products Knowledge/Tech Ex: electricity Businesses had tech to help produce faster. And learned how to run businesses better. Created by Mrs. Bedard PVMHS

1.) Why was there an economic Boom in the 1920s? REASON Definition GOOD because Position #1 in the world After WWI we were the richest/powerful Every other nation wants to do business with us. (TRADE) Advertizing Mass media designed to get you to buy Brings more consumers out and encourages spending. New Products Cars, Radios, time saving appliances People BUY…Businesses make $ JOBS! PANTS Tariff Tax on foreign goods makes them expensive People buy the cheaper American made goods. Stock Market Confidence Share /Stock = owning a part of a company People invest money = businesses have $ to pay wages/make stuff Created by Mrs. Bedard PVMHS

Created by Mrs. Bedard PVMHS 2.) How can each factor contributing to the economic boom also contribute to the reasons why the economy will crash in 1929? Created by Mrs. Bedard PVMHS

2.) How can LACK PANTS can also cause a BUST? REASON Definition BAD because Laissez-Faire No gov. regulations On business Business could take advantage, form trusts, raise prices, etc. Assembly Line Breaks big tasks into small fast tasks. If a business makes too much too fast = deflation of prices LACK Credit Buy now pay later People spend too much go into debt! Knowledge/Tech Ex: electricity If a business makes too much too fast = deflation of prices Created by Mrs. Bedard PVMHS

2.) How can LACK PANTS can also cause a BUST? REASON Definition BAD because Position #1 in the world After WWI we were the richest/powerful We are a target…other countries may want to hurt us. Advertizing Mass media designed to get you to buy Encourages us to buy stuff we don’t always need! New Products Cars, Radios, time saving appliances Old products don’t sell. Makes You think you need it. PANTS Tariff Tax on foreign goods makes them expensive If we make foreign goods expensive, won’t other nations to this to us? Share Confidence Share /Stock = owning a part of a company What if we invest in companies that don’t last? = we lose our $ Created by Mrs. Bedard PVMHS