Reading the handout, answer the following questions in your notebooks: (1) Why were farmers optimistic during WWI, and how did this lead to poor economic.

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Presentation transcript:

Reading the handout, answer the following questions in your notebooks: (1) Why were farmers optimistic during WWI, and how did this lead to poor economic decisions by farmers? (2) How were the Roaring Twenties unkind to rural America? (3) Why were rural banks allowed to fail?

(2) Your textbook says (page 404), “Overproduction was one factor contributing to the onset of the Great Depression” and (page 407) “When crop prices dropped in the 1920’s, farmers left many of their fields uncultivated.” – Based upon what we’ve talked already, how did these causes contribute to the effect of the Great Depression? Problems with the Farms and Rural and Western Banks [1] During WWI, prices are good [2] Farmers invest [3] Overproduction [4] Crop prices drop in 1920 & 1921 [5] Hard time paying mortgages and loans [6] Farms become foreclosed [7] Rural banks fail

“Roaring Twenties” A Culture of Optimism … By end of 1920’s, majority of homes have electricity Flappers Impact of radio Impact of automobile Scopes Trial Rise of K.K.K. & Nativism

Write down the following prompts in notebooks, leaving about three lines between in preparation to watch a video about the 1920’s “Boom to Bust”: (1) Impact of electricity and the automobile … (2) Credit culture of America in the 1920’s … (3) Impact of the radio … (4) Cultural tension and conflicts during the 1920’s … (5) The rise of spectator sports … (6) What led to “the bust” economically in the United States?

“Roaring Twenties” A Culture of Optimism … Rise of Advertising Credit culture / Installment Plan – By 1927, 75% of all household goods were purchased on credit “The butcher, the baker, and the candlestick maker” … all were invested in the marketplace – “Buying on margin” and borrowing to invest

Remember … (1) Study for quiz tomorrow. (2) Complete worksheet for Monday.