Tuesday, Dec. 9Objective:

• SWBAT identify examples of the effects on popular culture from the emergence of a modern market economy

Agenda:• Class Registration• Stock Market Fails• Notes• Crash Course• What did you learn

in school

Warm UpGreen Desk: Gather Materials Orange Desk: RecorderPink Desk: Clean UpYellow Desk: Gather Handouts

1. What were two negative effects of the 18th Amendment?

2. What were two causes of the Stock Market Crash in 1929?

3. After analyzing the lives of the characters of the 20s, use one sentence (a thesis) that could be used to describe the decade?

Bonus: Yesterday (Dec. 7) was the 70th Anniversary of

what event?

How did we get to the crash…Year $ of the

Model T

1924 $950

1925 $440

1926 $440

1927 $355

1928 $295

The Model T was factor in the stock market crash.• Drastic decreases in

prices.• Over saturation of

goods.• The Credit System used

incorrectly.

Causes of the Great Depression

Majority of families made less than necessary to support themselves

Over $

10,000

$5,000 - $10,000

$2,500 - $5,000

Poverty

Line

$2,000 - $2,500

$1,500 - $2,000

$1,000 - $1,500

Under $1,000

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Percentage of the Population Making Various Levels of Income in 1929

Family Income 1929

Families to the right of this line didn’t make enough for survival!

Increasingly unequal distribution of income

The top 1% received a 75% increase in their disposable income while the other 99% saw an average 9% increase in their disposable income.

80% of Americans had no savings at all.

Overproduction in industry and agriculture the “vicious cycle!”

Too much supply

wages not rising

Prices go down

Factories must cut

costs

Workers laid off

Lower disposable

income

Table shows the sharp decline in the prices of various products from American farms

Overextension of credit

People could not afford to pay for items they bought on the “installment plan”

Banks began to lose money

Farmers had their farms repossessed

US Protective tariffs

Foreign countries retaliated by increasing tariffs on American-made products

US companies had trouble selling their goods in other countries another reason for excess inventories

World trade slowed to a trickle

Trade

Dangerous investment practices by people and banks

Speculation( The process of selecting investments with higher risk in order to profit from an anticipated price movement)

“buying on margin”Shares of stock became over-valuedLack of federal government regulation of banks

and the stock marketBanks lost depositor’s money in the stock marketNet result Stock Market Crash and runs on

banks!

Causes of the Great Depression

Remember…the crash did NOT cause the Depression. It was a devastating event caused by speculation and lack of government regulation that made an already teetering economy that much worse.

Source: http://picsdigger.com/keyword/black%20tuesday%201929/

Effects of the Great Depression

What happened to….

Farmer Fred?Jazzy Jake?Mr. Smith?Suzy the Flapper?

What did you learn in school today?

1. How did the changing economy growth change the lives of each of the social groups?