Economic Factors of the Great Depressionppt.pptVIP

* SS8H8a Describe the impact of the boll weevil and drought on Georgia. Concepts: Location Production – Distribution - Consumption Lack of rainfall over extended period of time DROUGHT EFFECT 1924-1927 DROUGHT IN GEORGIA Food shortage Farmers went into debt Sharecroppers move to urban areas Agricultural related businesses struggle Economic Factors of the Great Depression SS8H8: b. describe the economic factors that resulted in the Great Depression THE ROARING 20s – AMERICANS BECOME RICH The 1920s were an age of dramatic social and political change. For the first time, more Americans lived in cities than on farms. The nation’s total wealth more than doubled between 1920 and 1929, and this economic growth swept many Americans into an affluent but unfamiliar “consumer society.” People from coast to coast bought the same goods thanks to nationwide advertising and the spread of chain stores , listened to the same music, did the same dances and even used the same slang! WWW.HISTORYCHANNEL.COM Analyzing Photographs Causes of the Great Depression B THE GREAT DEPRESSION THE 1930s Stock Market Speculation People bought stocks and paid only part of the cost at the time of purchase. Even though it wasn’t paid for, the investor could sell it. If stock went up, all could be paid. This made prices higher than what they were really worth. Over-Borrowing Borrowing more money that they could afford to repay. Hurts banks, so banks can’t loan money to businesses Businesses don’t get paid, people get laid off work Personal Debt Owing more that you can ever pay off homes, cars, boats, etc. Bank Practices Banks bought stock, when the market crashed…banks lost money. Runs on the bank, people withdraw all the money…the bank closes. Laissez-faire Attitude of living life to the fullest without worry about the future. Believing the economy would take care of itself; that the government couldn’t do anything to help. OVERPRODUCTION OF INDUSTRIAL AND AGRICULTURAL PRODUCTS