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The Nation’s Sick Economy

The Nation’s Sick Economy. SWBAT: Identify the causes of the nation’s failing economy in the late 1920s. Homework: None

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The Nation’s Sick Economy

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  1. The Nation’s Sick Economy SWBAT: Identify the causes of the nation’s failing economy in the late 1920s. Homework: None Do Now: What would happen if both of your parents suddenly lost their jobs and their entire life savings all in one day? What would change for you? What might you have to do to survive? How would life be different?

  2. L A C K P A N T S Let’s think back… • What factors led to a booming economy in the 1920s?

  3. Hoover Takes the Nation • Herbert Hoover, secretary of commerce under presidents Harding and Coolidge, ran for president and won due to the economic prosperity he claimed he help make. • Keep in mind, he had NO elected experience prior to being elected president. • Despite the calls for alarm, Hoover continued to believe the no government regulation was best for the economy.

  4. The Stock Market Crashes • In early September, 1929, stock prices peaked and then started to fall. • Investors, losing confidence in the stock market, started selling their stocks. • On October 29, 1929, aka Black Tuesday, the bottom fell out of the stock market. • Result? • Investors frantically sold everything to avoid losing too much money. • As a result, prices dropped dramatically, costing investors millions. • Additionally, millions of stocks couldn’t find buyers. • People, especially those who purchased shares on credit, lost their life savings.

  5. The Effect • On Black Tuesday, investors lost approx. $30 billion (an amt. = to what American spent on WWI). • This signaled the beginning of the Great Depression a period of time marked by unemployment, food lines, and serious debt.

  6. Assignment- But what caused it? • You will be assigned groups and together examine why the economy started to fail in the late 1920s. On the sheet provided, you will explain the cause and then draw a picture that will help you remember the cause. This needs to be done 5 minutes before the end of class so we can go over it.

  7. Exit Question • Which cause do you see as the biggest cause? Why?

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