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The Great Depression Begins
Read pages 464-466. Complete the chart by explaining how each factor contributed to the sick economy.
Living on Credit
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Industries in trouble
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Farmers need a lift
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The Nation’s Sick
Economy
Uneven Distribution of income
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Consumers have less money to
spend
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Make a headline and a quick description for this newspaper: (467-469)
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October 29, 1929:______________________________________________
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What did President Hoover
say to encourage Americans in November of 1929,
even though economic disaster had struck?
(last paragraph p471)
Make him a quote in the bubble above
Herbert Hoover- November 1929
Use the 4 graphs below to answer the questions that follow.
Economic Indicators are measures that signal trends in a nation’s economy. During the great depression
several trends were apparent. Those indicated at the right are linked- the conditions of one can and do affect
the other. For instance, when banks fail (close) (1), some businesses may lose their loans and have to close
down (2), which can cause unemployment to rise (people lose their jobs because the business closed)(3). Then
people aren’t getting paychecks so they have less money to spend- income and spending drop together.(4)
(1) BANK FAILURES
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
1928
(2) BUSINESS FAILURES
35
30
25
Banks Failing
thousands)
(in
15
10
5
'29
'30
'31
'32
0
1928
'33
(3) UNEMPLOYMENT
12
10
Unemployed
People (in
thousands)
8
6
4
2
'29
'30
'31
'29
'30
'31
'32
33
(4) INCOME and SPENDING
14
0
1928
Businesses
Failing (in
thousands)
20
'32
$800
$700
$600
$500
$400
$300
$200
$100
$0
Yearly Income
(per person)
Average
Consumer
Spending (per
person)
'33
Interpret the graphs:
1. In what year did the biggest jump in bank failures occur?
2. What measure on the graphs seems to indicate an improvement in the U.S. economy during the Depression?
3. What year appeared to be the worst year for America?
4. Which of the factors, shown on the graphs, do you feel is the most important economic factor? Why?
This cartoon is showing a comparison of John McCain to Herbert
Hoover. (a negative comparison.) Much like the 1920’s, the 2000’s
have been a time of booming economy, easy credit, and
consumer over-spending.
One of the main causes of the Great Depression is the “unequal
distribution of wealth”… something President Elect Barack
Obama is quoted as saying he wants to fix by “sharing the
wealth.” Do you think re-distributing the wealth would have
helped in 1929 or today?
The Dust Bowl
Label The Rocky Mountains- and shade the area brown
1.
2.
3.
4.
5.
Color the area damaged/affected/touched by the drought light yellow.
Color the area of the actual extreme “Dust Bowl” red.
Label every state affected by the drought and dust bowl. (26ish)
What state were many of these displaced farmers moving to?
Draw arrows from the dust bowl region, to the state they were fleeing to.