THE GREAT DEPRESSION Chapter 19 Section 1

The Dow Jones Since 2000 FEBRUARY 22, DJIA at 10,305 FEBRUARY 22, DJIA at 10,526 (G.W. Bush’s first year) FEBRUARY 22, DJIA at 11,101 FEBRUARY 22, DJIA at 13,100 FEBRUARY 22, 2008 – DJIA at 12,156 FEBRUARY 22, DJIA at 7,187 (Obama’s first year) FEBRUARY 22, DJIA at: 10,383 FEBRUARY 22, 2011 – DJIA at: 12,213 FEBRUARY 22, DJIA at: 12,939 FEBRUARY 22, DJIA at: ?????

ATT = BRK-HA “= 129,894 BestBuy “= Coke = Cisco = Circuit City= Google=

1)Late 1920s – the ____________ fell apart 2)Most Americans lived on less than __________ a year 3)People relied on _____________________ to pay for things that cost a lot of money (like credit cards today) 4)People invested money in the __________________ - People purchased ____________ in a business Goal: Become _________! ECONOMY $3000 INSTALLMENT PLANS STOCK MARKET SHARES RICH

THE STOCK MARKET

5) In order for people to get rich they _____________ money based on _______________. They believed the price of stocks would _____________. 6)Stock prices ______________ throughout the 1920s 7) In autumn 1929, stock prices ___________________ INVESTED SPECULATION RISE WENT UP PLUMMETED

8)People began to ________ stocks. As a result, prices began to ___________ some more. 9)On October 29, 1929 – “______________________” Stock prices __________________ causing widespread panic across the U.S. and world! 10)Overnight, stocks became __________________ and those who borrowed owed __________________ than the stock was worth. 11) Prices would continue to fall for __________________. SELL FALL BLACK TUESDAY PLUMMETED AGAIN WORTHLESS A LOT MORE 3 MORE YEARS

THE DOW JONES INDUSTRIAL AVERAGE FEBRUARY 22, DJIA at 4,000 FEBRUARY 22, DJIA at 11,101 FEBRUARY 22, DJIA at 13,100 OCTOBER 1, 2007 DJIA at 14, FEBRUARY 22, 2008 – DJIA at 12,156 FEBRUARY 25, DJIA at 7,187 FEBRUARY 26, DJIA at: 10,355 FEBRUARY 28, 2011 – DJIA at: 12,201 FEBRUARY 22, 2012 – DJIA at: 12, (7:25 am)

ATT = BRK-A = 129,894119,375 BestBuy = Coke = Cisco = Circuit City= If you spent $100,000 last year on Coca-Cola, you would have $107,718 today. Your net profit / income would be $7,718. (A return of 7.7%) If you spent $100,000 on Circuit City, you would only have $66,667 today, or a loss of $33,333 (a loss of 33.3%)

12)The ___________________________ hits the U.S. 13)___________________ would be out of work 14)Farmers ___________________ on loans and would lose their farms. They purchased new _______________ and could not pay back the loans. ____________ went out of business. After WWI, fewer __________ were being sold. GREAT DEPRESSION MILLIONS DEFAULTED MACHINES BANKS CROPS

15) ______________ and ______________ industries grew smaller due to lack of spending money Smaller ______________ let workers go. 16) In 1932, the U.S. ______________ had fallen apart and __________________ of businesses had closed. ____________________ could not pay employees ____________________ had lost their jobs ____________________ stockpiled. Many had less than _____________ a day for food. CLOTHINGMINING FACTORIES ECONOMY THOUSANDS FACTORY OWNERS MILLIONS UNSOLD GOODS $1.50

17)Banks _________________ on many farmers’ properties On one day in Mississippi, _________ of all farmers lost their property 18) _________________ and __________________ were common since many people were without food. FORECLOSED 25% BREADLINESSOUP KITCHENS

BREADLINES IN MAJOR CITIES

SOUP KITCHENS

19)TEENS – There were more than ______________ homeless teens Since they had no _________, many left home. Many felt they were _____________ to their families Some traveled on top and in ________________. Many were ___________ or __________. Others died from _____________ and ______________ Some found work __________________________. 250,000 JOBS BURDENS BOX CARS INJUREDDIED DISEASE HUNGER ON FARMS PICKING CROPS

20)The ___________________ had no answers. _____________________ wanted to help end the Depression. He felt government ________________ was not the answer. He wanted ________________ to help themselves. GOVERNMENT PRESIDENT HOOVER CHARITY AMERICANS

21)Many Americans were _____________: a) Some joined the _____________________. b) Farms ___________________ crops. c) Farmers stopped ___________ from taking their property d) WWI ______________ marched on Washington, DC 1932 – Known as the “_______________________” Congress had promised ____________ to them but Hoover rejected them. ___________________ drove out the vets by attacking them Many Americans saw this and demanded _____________ to the government ANGRY COMMUNISTS DESTROYED BANKS VETS BONUS ARMY BONUSES U.S. TROOPS CHANGE

Vocabulary Speculation – making a guess as to whether something will happen Stock – a unit of ownership in a business Soup Kitchen – place where free food is served to the needy Breadlines – a line of people waiting for free food