1. The Great Depression
During World War I, federal spending grows three times larger than tax collections. When the government cuts back spending to balance the budget in 1920, a severe recession results. However, the war economy invested heavily in the manufacturing sector, and the next decade will see an explosion of productivity... although only for certain sectors of the economy. Although the Great Depression was relatively mild in some countries, it was severe in others, particularly in the United States, where, at its nadir in 1933, 25 percent of all workers and 37 percent of all nonfarm workers were completely out of work. Some people starved; many others lost their farms and homes.

2. Stock Market Crash
Many Americans invested in the stock market in the 1920s with the hope of getting rich
Many investors bought stock on margin to increase their gains
The stock market crashed and Americans lost billions of dollars.
The stock market crash led to a banking crises. Failing banks closed their doors, and people who never had money in these banks sometimes lost everything.

3. Overproduction and Underconsumption
Overproduction – mass-production and new farming techniques increased production of goods and crops
Underconsumption – wages had not increased and people were too deep in debt to borrow more money.
More products were available than people could afford to buy.
People borrowed money to be able to buy more products, increasing personal debt.
Many people stopped buying goods and those who could afford to buy goods already had everything they needed.

4. Initial Government Response
Federal Reserve raised interest rates
Companies couldn’t afford to borrow money to stay in business
Workers lost jobs and could not longer buy goods
Companies lost both capital and customers
Hawley-Smoot Tariff Act – raised tariffs on imported goods
European companies in response raised tariffs
American goods became too expensive for Europeans, causing businesses to lose more money

5. Processing The parts of a kinetic sculpture are constantly moving.
For example, a ball might hit a lever that sets off a pulley. The pulley might, in turn, pull a bucket that dumps water on a paddle wheel. The paddle wheel
creates another movement.
Different actions can take place independently of one another as well. But all the actions together have a combined result.

6. Assignment:
Draw and label a simple kinetic sculpture commemorating the causes of the Great Depression.
At least one part on your sculpture must represent each Key Content Term.
Great Crash,
Overproduction
Underconsumption
Federal Reserve
tariff
These terms may appear on your machine in any order. However, the more clearly you can show how one action led to another, the more elegant your machine will be.