1. “The End of Prosperity”
The Great Depression
“The End of Prosperity”

2. Prosperity of the 1920s
The 1920s witnessed a time of change for America.
Flappers and African-Americans began to change social
norms. Hollywood and movies became popular.
Prosperity reigned for most of the 20s and people did not
See the economic disaster on the horizon.

3. What were the signs of economic trouble?
1) Troubled Industries
a. Textiles
- Faced competition from foreign producers in
Japan, India, China and Latin America.
SOUND FAMILIAR????
What are some modern examples of this?
What are the emotions that workers in the U.S. have
that face this issue? (Outsourcing/Globalization)

4. What were the signs of economic trouble?
2) Railroads
- Lost business to new modes of transportation.

5. What were the signs of economic trouble?
3) Home Construction
a. New home construction slowed
b. Significant because of its impact on a wide range of economic areas.
- Furniture industry struggles (Grand Rapids)

6. Why do farmers get into trouble?
4) Farmers Struggle
1) World War I had caused an increase in the demand for crops. After WWI the demand and prices fell.
2) Farmers could not pay back loans they had taken out to expand their farms during the prosperous times.
3) Government steps in:
PRICE SUPPORTS: (McNary-Haugen Bill)
a. Gov’t bought surplus crops at prices higher then the market rate.
b. Gov’t would then sell these crops on the world market for lower
prevailing prices.
c. To make up for the losses of buying high and selling low, the gov’t placed a tax on domestic food sales. Passing the cost of the program onto consumers.

7. What Happened to People Living on Credit?
5) People Abusing Credit
1) Many Americans appeared prosperous during the 20s, when in actuality they were piling up huge debts due to credit.
2) CREDIT: Consumers agree to buy now and pay later with interest added.
3) Why do people fall into credit card debt?

8. Credit Card Questions 1) Why do people fall into credit card debt?
2) Why do many Americans feel the urge to keep up with their neighbors/friends?
3) What is your philosophy for using credit cards?

9. How did uneven distribution of income lead to economic trouble?
1) Nearly ½ the nation’s families earned under $1,500/year.
- Considered the minimum for a decent standard of living
2) Rich Americans in the 20s saw their income increase
- The income of the wealthiest 1% rose by 75%
3) Because of this gap many Americans did not have money to buy numerous goods that factories produced.