Tuesday, Dec. 9 Objective: SWBAT identify examples of the effects on popular culture from the emergence of a modern market economy Agenda: Class Registration Stock Market Fails Notes Crash Course What did you learn in school

Warm Up Green Desk: Gather Materials Orange Desk: Recorder Pink Desk: Clean Up Yellow Desk: Gather Handouts 1.What were two negative effects of the 18 th Amendment? 2.What were two causes of the Stock Market Crash in 1929? 3.After analyzing the lives of the characters of the 20s, use one sentence (a thesis) that could be used to describe the decade? Bonus: Yesterday (Dec. 7) was the 70 th Anniversary of what event?

How did we get to the crash… Year$ of the Model T 1924$ $ $ $ $295 The Model T was factor in the stock market crash. Drastic decreases in prices. Over saturation of goods. The Credit System used incorrectly.

Causes of the Great Depression

Majority of families made less than necessary to support themselves Families to the right of this line didn’t make enough for survival!

Increasingly unequal distribution of income The top 1% received a 75% increase in their disposable income while the other 99% saw an average 9% increase in their disposable income. 80% of Americans had no savings at all.

Overproduction in industry and agriculture  the “vicious cycle!” Too much supply  wages not rising Prices go down Factories must cut costs Workers laid off Lower disposable income

Table shows the sharp decline in the prices of various products from American farms

Overextension of credit  People could not afford to pay for items they bought on the “installment plan”  Banks began to lose money  Farmers had their farms repossessed

US Protective tariffs  Foreign countries retaliated by increasing tariffs on American-made products  US companies had trouble selling their goods in other countries  another reason for excess inventories  World trade slowed to a trickle Trade

Dangerous investment practices by people and banks  Speculation( The process of selecting investments with higher risk in order to profit from an anticipated price movement)  “buying on margin”  Shares of stock became over-valued  Lack of federal government regulation of banks and the stock market  Banks lost depositor’s money in the stock market  Net result  Stock Market Crash and runs on banks!

Causes of the Great Depression Remember…the crash did NOT cause the Depression. It was a devastating event caused by speculation and lack of government regulation that made an already teetering economy that much worse. Source:

Effects of the Great Depression

What happened to…. Farmer Fred? Jazzy Jake? Mr. Smith? Suzy the Flapper?

What did you learn in school today? 1. How did the changing economy growth change the lives of each of the social groups?