THE GREAT DEPRESSION

1. THE GREAT DEPRESSION Chapter 19 Section 1

2. The Dow Jones Since 2000 • FEBRUARY 22, 2000 - DJIA at 10,305 • FEBRUARY 22, 2001 - DJIA at 10,526 (G.W. Bush’s first year) • FEBRUARY 22, 2006 - DJIA at 11,101 • FEBRUARY 22, 2007 - DJIA at 13,100 • FEBRUARY 22, 2008 – DJIA at 12,156 • FEBRUARY 22, 2009 - DJIA at 7,187 (Obama’s first year) • FEBRUARY 22, 2010 - DJIA at: 10,383 • FEBRUARY 22, 2011 – DJIA at: 12,213 • FEBRUARY 22, 2012 - DJIA at: 12,939 • FEBRUARY 22, 2013 - DJIA at: ?????

3. 2010 2013 • ATT = 28.36 • BRK-HA “ = 129,894 • BestBuy “ = 32.44 • Coke = 26.56 • Cisco = 18.73 • Circuit City = 0.0030 • Google =

4. ECONOMY $3000 INSTALLMENT PLANS • Late 1920s – the ____________ fell apart • Most Americans lived on less than __________ a year • People relied on _____________________ to pay for things that cost a lot of money (like credit cards today) • People invested money in the __________________ - People purchased ____________ in a business Goal: Become _________! STOCK MARKET SHARES RICH

5. THE STOCK MARKET

6. INVESTED SPECULATION 5) In order for people to get rich they _____________ money based on _______________. They believed the price of stocks would _____________. • Stock prices ______________ throughout the 1920s 7) In autumn 1929, stock prices ___________________ RISE WENT UP PLUMMETED

8. SELL FALL BLACK TUESDAY PLUMMETED AGAIN • People began to ________ stocks. As a result, prices began to ___________ some more. • On October 29, 1929 – “______________________” Stock prices __________________ causing widespread panic across the U.S. and world! • Overnight, stocks became __________________ and those who borrowed owed __________________ than the stock was worth. 11) Prices would continue to fall for __________________. WORTHLESS A LOT MORE 3 MORE YEARS

9. THE DOW JONES INDUSTRIAL AVERAGE • FEBRUARY 22, 2000 - DJIA at 4,000 • FEBRUARY 22, 2006 - DJIA at 11,101 • FEBRUARY 22, 2007 - DJIA at 13,100 • OCTOBER 1, 2007 DJIA at 14,087.55 • FEBRUARY 22, 2008 – DJIA at 12,156 • FEBRUARY 25, 2009 - DJIA at 7,187 • FEBRUARY 26, 2010 - DJIA at: 10,355 • FEBRUARY 28, 2011 – DJIA at: 12,201 • FEBRUARY 22, 2012 – DJIA at: 12,955.17 (7:25 am)

10. 2011 2012 • ATT = 28.36 30.34 • BRK-A = 129,894 119,375 • BestBuy = 32.44 25.91 • Coke = 26.56 28.61 • Cisco = 18.73 20.36 • Circuit City = 0.0030 0.0020 If you spent $100,000 last year on Coca-Cola, you would have $107,718 today. Your net profit / income would be $7,718. (A return of 7.7%) If you spent $100,000 on Circuit City, you would only have $66,667 today, or a loss of $33,333 (a loss of 33.3%)

12. GREAT DEPRESSION MILLIONS DEFAULTED • The ___________________________ hits the U.S. • ___________________ would be out of work • Farmers ___________________ on loans and would lose their farms. They purchased new _______________ and could not pay back the loans. ____________ went out of business. After WWI, fewer __________ were being sold. MACHINES BANKS CROPS

13. CLOTHING MINING FACTORIES ECONOMY 15) ______________ and ______________ industries grew smaller due to lack of spending money Smaller ______________ let workers go. 16) In 1932, the U.S. ______________ had fallen apart and __________________ of businesses had closed. ____________________ could not pay employees ____________________ had lost their jobs ____________________ stockpiled. Many had less than _____________ a day for food. THOUSANDS FACTORY OWNERS MILLIONS UNSOLD GOODS $1.50

14. FORECLOSED 25% BREADLINES SOUP KITCHENS • Banks _________________ on many farmers’ properties On one day in Mississippi, _________ of all farmers lost their property 18) _________________ and __________________ were common since many people were without food.

15. BREADLINES IN MAJOR CITIES

16. SOUP KITCHENS

17. 250,000 JOBS BURDENS • TEENS – There were more than ______________ homeless teens Since they had no _________, many left home. Many felt they were _____________ to their families Some traveled on top and in ________________. Many were ___________ or __________. Others died from _____________ and ______________ Some found work __________________________. BOX CARS INJURED DIED DISEASE HUNGER ON FARMS PICKING CROPS

18. GOVERNMENT PRESIDENT HOOVER • The ___________________ had no answers. _____________________ wanted to help end the Depression. He felt government ________________ was not the answer. He wanted ________________ to help themselves. CHARITY AMERICANS

19. ANGRY COMMUNISTS DESTROYED BANKS VETS • Many Americans were _____________: a) Some joined the _____________________. b) Farms ___________________ crops. c) Farmers stopped ___________ from taking their property d) WWI ______________ marched on Washington, DC 1932 – Known as the “_______________________” Congress had promised ____________ to them but Hoover rejected them. ___________________ drove out the vets by attacking them Many Americans saw this and demanded _____________ to the government BONUS ARMY BONUSES U.S. TROOPS CHANGE

21. Vocabulary • Speculation – making a guess as to whether something will happen • Stock – a unit of ownership in a business • Soup Kitchen – place where free food is served to the needy • Breadlines – a line of people waiting for free food