The Great Depression Notes (______ - ______)


The _______________ _______________ of the ______________ caused problems an economic BUST
in the 1930 and changed people’s the attitudes about the role of ____________________in controlling the
economy
The Great Depression = economic hardship during the 1930s with ____________
_____________________ and _________________ (very poor)
What do I need to know about the economy first?
1. The Business Cycle – the economy naturally goes through times of recession, recovery, and prosperity.
2. The Stock Market
o The _____________________ is a place where stocks and bonds are ________ - meaning
bought and sold
o _________________ - unit of ownership in a company.
Causes of the Great Depression
1. The Stock Market Crash of __________
2. Overproduction
3. Over speculated on stocks
4. ____________ failed
5. The Federal Reserve failed to prevent
banks from collapsing
6. High _______________
1. The Stock Market Crash – Black Tuesday
 On October 24, __________ the market began to __________ more than the previous months and
people began to _____________
 By Tuesday Oct. 29, 1929 the prices plunged and ____________ became ___________
 This became known as ___________________________
2. ______________________ - making _________________________ and famers growing too much
following WWI.
 Factories and farms were producing more goods than the people could afford to buy.
 As a result, _________________, factories closed and workers were _____________
 Prices for farm products also fell, as a result, ____________ could not
_____________________________ and many lost their farms.
3. _____________________ - buying too much on _____________ (even stock – buying “stock on
________________”.
 ________________ loaned money to people who invested in the stock market
 When the market crashed, people could not pay their loans and the bank could not give depositors their
money
 As a result, many banks _______________________ and many families lost their
______________________
4. The ___________________________ failed to prevent the collapse of the banking system
 Federal Reserve = the central _______________ system in the United States
 It helps banks the way banks help people
5. High ________________________ rates
 Jobless became homeless
 Farming families _____________________ to look for jobs
6. High __________________ discouraged international _______________
 Tariff = ______________ on imported goods
 Intended to make imported goods very expensive and encourage people to buy domestic products
How to remember the CAUSES OF THE GREAT DEPRESSION…
1. H _________________________________________________________
2. O _________________________________________________________
3. O _________________________________________________________
4. V _________________________________________________________
5. E _________________________________________________________
6. R _________________________________________________________
LET’S REVIEW
Matching:
1. _____ The nation’s bank that supports all the countries’
banks
A. Over Production
2. _____ Buying more stock than one can afford because your
think the economy will continue to get better
B. Unemployed
3. _____ Producing more goods than people can buy
C. Over Speculation
4. ____ A tax on goods bought from another country
D. Federal Reserve
5. ____ Jobless; involuntarily (not by choice) out of work
E. Tariff
True or False:
1. _________ High tariffs encouraged international trade.
2. _________ By 1932, 25% of Americans were unemployed.
3. _________ Many homeless people moved into shanty towns called Hoovervilles.
4. _________ After banks failed, the Federal Reserve and President Theodore Roosevelt failed to save
the banks.
5. _________ The Dust Bowl ravaged the Northeast.
Short Answer:
1. List the causes of the Great Depression. (THINK HOOVER)
2. Rank the causes according to what you think is the most important cause to the least important cause.
(This is your opinion)