41. Cause Of The Great Depression third. Since the Great depression happened after the 1929 stock marketcrash, many people blamed it for the economic collapse. Some http://www.1929stockmarketcrash.com/1929-stock-market-crash/cause-of-the-great-d

Cause of Great Depression Did the Stock Market Crash Cause the Great Depression? After the stock market crash, production fell by nearly 50 percent from the business cycle peak in August 1929 to the trough in March 1933. At the same time, the overall price level dropped by about one-third. Since the Great Depression happened after the 1929 stock market crash, many people blamed it for the economic collapse. Some held President Hoover responsible; others targeted the brokers, bankers, and businessmen. But the cause of the Great Depression could not be attributed to one individual or even a group of people. Also, it seems unlikely that a crash in stock prices would have been sufficient to lead the U.S. economy into depression and to sustain the downward spiral in business activity. So, what events triggered the Great Depression? 1. Unequal Distribution of Wealth and Income

42. Cause Of Stock Market Crash The crash of 1929 Could It The Great depression Revisited Book review of The Greatdepression An international Disaster of Perverse Economic Policies . http://www.1929stockmarketcrash.com/1929-stock-market-crash/cause-of-stock-marke

Articles related to Cause of Stock Market Crash The Great Depression A decidedly liberal/Keynesian look at the Great Depression by the author of the Liberalism Resurgent web page The Great Depression in the United States From A Neoclassical Perspective Article by Harold L. Cole and Lee E. Ohanian, appearing in the Winter 1999 (Vol. 23 No. 1) issue of the Federal Reserve Bank of Minneapolis Quarterly Review , an academic journal that primarily presents economic research aimed at improving policymaking by the Federal Reserve System and other governmental authorities. The Great Depression Part of the An Outline of American History website Slouching Towards Utopia?: The Economic History of the Twentieth Century, XIV - The Great Crash and the Great Slump A study of the economics of the Great Depression by J. Bradford De Long of University of California at Berkeley. Argues that the Federal Reserve's use of tight monetary policy exacerbated the crisis. Discusses the macroeconomic conflicts that are associated with unemployment.

43. The Crash Of 1929: Could It Happen Again?  [Mackinac Center For Public Policy] Summary The stock market crash of 1929 and the Great depression that followed causedwidespread suffering among Michigan citizens. Could economic hardship of http://www.mackinac.org/article.asp?ID=2485

44. The Shepherd Investment Strategist, A Service Of JAS MTS Inc. 1929 Stock Market crash and The Paul Gusmorino* summed up the situation very wellwhen he wrote, The Great depression was the worst economic slump ever http://www.jasmts.com/1929StockMarketCrash.html

Tuesday June 8, 2004 1929 Stock Market Crash and The Great Depression "There are so many eerie similarities these days to the era of the Great Depression that we must not ignore them". Jim Shepherd in a Newsletter to subscribers (see complete comment at the end of this article). Paul Gusmorino* summed up the situation very well when he wrote, "The Great Depression was the worst economic slump ever in U.S. history, and one which spread to virtually all of the industrialized world." Many factors played a role in bringing about the depression; however one of the main causes was the extensive stock market speculation that took place during the latter part of the 1920's. Probably of more significance was the descent by the economy into a deflationary spiral in 1930. As we examine some of the causes and ramifications of the Great Depression we must never assume it could not happen again. At the depth of the depression, the economy came to a virtual stand still. Workers couldn't find employment because employers wouldn't hire them to work; firms wouldn't hire workers because there were no markets for produced goods; and there was no market for goods because workers were unemployed and had no money to spend. Seventy five percent of the US population spent their entire yearly incomes on food, shelter and some clothing. Many sifted through slag heaps to find bits of coal to heat their homes. What had started as a slow rolling problem quickly snowballed into an economic calamity. Retailers were suddenly forced to cut back plans for further purchases of goods. Factories that manufactured those goods cut back production and those that were out of work, or who feared being out of work, cut back on their purchases.

45. LewHisDepression that the severest phase of the depression is over one headline a scant three monthsafter the 1929 crash. began to flag even among some economists, the White http://www.dragongoose.com/LewHisDepression.html

Joan Shaw A familiar sight during the 1930sa WPA crew, this one excavating for and laying 8" tile for the Newton drainage project There were many who believed these experts were right, running up accounts with farm suppliers and corner grocery stores on the strength of an economic upturn they expected would materialize in just a few weeks or after the next growing season. The results of a WPA projectUSU's amphitheater on the west side of College Hill, removed in the 1990s. The historian, John Kenneth Galbraith, in his classic book on this era, The Great Crash 1929 There were many in Cache Valley who were not so lucky. By 1932, the valley had 1,500 unemployed wage earners. To help alleviate suffering, the valley's citizens responded with a church and civic cooperative effort, accumulating food, clothing, and other necessities to be distributed to those in want through church storehouses and community distribution centers. Vacant lots became garden plots for the destitute, and hot lunches were made available to school children. The Red Cross also became active in distributing necessities after the drought of 1931. When the valley's economic situation continued to worsen, the Logan Chamber of Commerce created an employment program funded by a two percent tax on the wages of business and municipal employees, and the county augmented the funding of this program by taxing admission charges to local entertainment. These efforts managed to put approximately 200 men to work building sidewalks, curbs and gutters, school playgrounds, and roads throughout the county. In addition, President Hoover's Reconstruction Finance Corporation (RFC) made loans to banks who were, in turn, expected to make money available to various livestock growers.

46. The First Measured Century: Timeline: Events - Stock Market Crash 1929 The stock market crash ushered in the Great depression. What made the stockmarket crash? But in 1929, the bubble burst and stocks started down an even http://www.pbs.org/fmc/timeline/estockmktcrash.htm

Back to Timeline Timeline: EVENTS Wave of Immigration Hollerith Machine Chicago World's Fair Turner Frontier Essay ... Immigration Laws Stock Market Crash Great Depression 1936 Election World War II Executive Order 8802 ... Census 2000 Stock Market Crash - The stock market crash ushered in the Great Depression. What made the stock market crash? Here's a brief summary. Capital is the tools needed to produce things of value out of raw materials. Buildings and machines are common examples of capital. A factory is a building with machines for making valued goods. Throughout the twentieth century, most of the capital in the United States was represented by stocks. A corporation owned capital. Ownership of the corporation in turn took the form of shares of stock. Each share of stock represented a proportionate share of the corporation. The stocks were bought and sold on stock exchanges, of which the most important was the New York Stock Exchange located on Wall Street in Manhattan. Throughout the 1920s a long boom took stock prices to peaks never before seen. From 1920 to 1929 stocks more than quadrupled in value. Many investors became convinced that stocks were a sure thing and borrowed heavily to invest more money in the market.

47. Great Depression had gone into depression six months earlier, the Great depression may be prices onthe New York Stock Exchange in October 1929. (See Stock Market crash of 1929 http://search.eb.com/elections/micro/244/89.html

Great Depression, Unemployed men vying for jobs at the American Legion Employment Bureau in Los Angeles during the Great Depression also called DEPRESSION OF 1929, or SLUMP OF 1929, economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world. Though the U.S. economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929. ( See Stock Market Crash of 1929 .) During the next three years stock prices in the United States continued to fall, until by late 1932 they had dropped to only about 20 percent of their value in 1929. Besides ruining many thousands of individual investors, this precipitous decline in the value of assets greatly strained banks and other financial institutions, particularly those holding stocks in their portfolios. Many banks were consequently forced into insolvency; by 1933, 11,000 of the United States' 25,000 banks had failed. The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand and hence of production, thus aggravating the downward spiral. The result was drastically falling output and drastically rising

48. GALLERY SIX:The Great Depression Agriculture, mired in depression for much of the 1920 s, was By 1929 production wasoutstripping demand. a heavy debt load even before the crash, the onset of http://hoover.archives.gov/exhibits/Hooverstory/gallery06/gallery06.html

Home Page Welcome Research Visiting the Library ... Mailbox GALLERY SIX:The Great Depression Linked pictures are available for purchase. The worst disaster in American economic history began in October 1929. This gallery puts the Great Depression in historical context and details Hoover's early response to the crisis. Disaster in the Making As early as 1925, then-Secretary of Commerce Hoover had warned President Coolidge that stock market speculation was getting out of hand. Yet in his final State of the Union Address, Coolidge saw no reason for alarm. "No Congress...ever assembled has met with a more pleasing prospect than that which appears at the present time"...said Coolidge early in 1929. "In the domestic field there is tranquility and contentment...and the highest record of prosperity in years." Al Smith's campaign manager, General Motors executive John J. Raskob, agreed. In an article entitled "Everybody Ought to be Rich" Raskob declared, "Prosperity is in the nature of an endless chain and we can break it only by refusing to see what it is." President-elect Hoover disagreed. Even before his inauguration he urged the Federal Reserve to halt "crazy and dangerous" gambling on Wall Street by increasing the discount rate the Fed charged banks for speculative loans. He asked magazines and newspapers to run stories warning of the dangers of rampant speculation.

49. Investment Dictionary Crash Of 1929 - Investors Edge Class B Shares. , crash of 1929. , crash of 1987. , Cornering the market. , crash., Curbs in. , Deposit in transit. Dividend in arrears. , depression. , Desk (the)., http://www.investorsedge.com/dictionary/Crash_of_1929.html

Simple Search Advanced Search All News Companys Stock Quotes Investment Dictionary Symbol Lookup Market Movers Browse Companies Investment Dictionary ... Site Map Market Index Changes Symbol Company Change ^DJI Dow Jones ^IXIC Nasdaq ... ^SPC Stock Symbol Information Stock Symbol: Quote Markets Level II Options Charts News Profile Filings Historical [Symbol Lookup] Investing News Clean technology companies attract venture capitalists Sat May 8, 2004 - 02:27:34 PM US stocks plummet on latest jobs data; Dow down 120 Sat May 8, 2004 - 02:27:11 PM CVS and Eckerd Transaction Expected to Close in July Mon June 7, 2004 - 03:40:23 PM Financial stocks struggle against inflation woes Sat May 8, 2004 - 02:27:11 PM Mortgage kickbacks under fire Mon June 7, 2004 - 08:00:15 AM More News... Suggested Sites Investment Dictionary Crash of 1929 Crash of 1929 The name for the period lasting from October 29th to November 13th in 1929 during which the Stock market dropped violently, losing much of ITS value and contributing to the start of the Great Depression . The Crash of 1929 was the impetus for a great number of reforms and regulations related to securities Trading Related Terms: 13 Crash of 1929 Great Depression Stock market Crash ... Trading Other Related Pages: Category: Stocks Starting With: C Semi Related Terms: 624 CLICK HERE TO VIEW flip('1');

50. The Great Depression And New Deal, 1929-1939 1929, 1933. term programs to strengthen the economy back to its precrash level),or held that never again should the government allow another depression to take http://iws.ccccd.edu/kwilkison/Online1302home/20th Century/DepressionNewDeal.htm

Welcome to HIST 1302 Online United States History, 1877- Part II: War, Depression and War, 1914-1945 The Great Depression and New Deal, 1929-1940s A 1928 campaign truck. Hoover won easily, taking 58 percent of the vote. (Photo Credit) Background and Causes of the Great Depression. The 1920s "boom" enriched only a fraction of the American people. Earnings for farmers and industrial workers stagnated or fell. While this represented lower production costs for companies, it also precluded growth in consumer demand. Thus, by the mid 1920s the ability of most Americans to purchase new automobiles, new houses and other durable goods was beginning to weaken. This weakening demand was masked, however, by the "great bull market" in stocks on the New York Stock Exchange. The ever-growing price for stocks was, in part, the result of greater wealth concentration within the investor class. Eventually the Wall Street stock exchange began to take on a dangerous aura of invincibility, leading investors to ignore less optimistic indicators in the economy. Over-investment and speculating (gambling) in stocks further inflated their prices, contributing to the illusion of a robust economy. The crucial point came in the 1920s when banks began to loan money to stock-buyers since stocks were the hottest commodity in the marketplace. Banks allowed Wall street investors to use the stocks themselves as collateral. If the stocks dropped in value, and investors could not repay the banks, the banks would be left holding near-worthless collateral. Banks would then go broke, pulling productive businesses down with them as they called in loans and foreclosed mortgages in a desperate attempt to stay afloat.

51. The Great Depression Begins:1929 regarding the cause of The Great depression holds that it a recession began in thesummer of 1929 (2). In After the crash, the world monetary system was still http://campus.northpark.edu/history/WebChron/World/GreatDepress.CP.html

The Great Depression Begins Back to the "Interwar Years" Chronology During this time of depression, people were desperate for help and turned to Notes: A price comparison from the 1930's to Today of common items Great Depression Affects Ontario, Canada Great Depression affects the meat industry in France Sources: Fortune , August 18, 1997 v 136 n4 p36 The Economist , Sept. 19. 1998 v347 n8090 p95 Insight on the News , Feb. 16, 1998 v14 n6 p18 [4] Paul A. Samuelson, William D. Nordhaus, Macroeconomics 5th ed. (McGraw-Hill 1995) [5] Adam Smith, An Inquiry into the Nature and Causes of the Wealth Of Nations (Liberty Fund 1981) Edited by Karl W. Erickson Research by Elliot J. Wachter Written by Kathryn D. Magnuson 18 February 1999 dkoeller@northpark.edu

52. PlanetPapers - Stock Market Crash 1929 Stock Market crash 1929. Written by Allen. The Great depression was the worst economicslump ever in US history, and one, which spread to virtually the entire http://www.planetpapers.com/Assets/3909.php

Essay Index Custom Writing Admissions Help Submit an Essay FAQ / Help Essay Links Link to us Contact Us search tips power search -> Jump to: Home Art and Music Biographies Business Creative Writing Film Geography History Literature Shakespeare Miscellaneous Poetry Politics Religion Social Issues What's New Top10 Essays Login or Signup Read User Comments Rate/Comment on this essay Cite this essay: MLA APA Print this essay Index ... American History Stock Market Crash 1929 Written by: Allen A major reason for this large and growing gap between the rich and the working-class people was the increased manufacturing output throughout this period. From 1923-1929 the average output per worker increased 32% in manufacturing. During that same period of time average wages for manufacturing jobs increased only 8%. Thus wages increased at a rate one fourth as fast as productivity increased. As production costs fell quickly, wages rose slowly, and prices remained constant, the bulk benefit of the increased productivity went into corporate profits. In fact, from 1923-1929 corporate profits rose 62% and dividends rose 65%. The federal government also contributed to the growing gap between the rich and middle-class. Calvin Coolidge's administration favored business, and as a result the wealthy who invested in these businesses. An example of legislation to this purpose is the Revenue Act of 1926, signed by President Coolidge on February 26, 1926, which reduced federal income and inheritance taxes dramatically. Andrew Mellon, Coolidge's Secretary of the Treasury, was the main force behind these and other tax cuts throughout the 1920's. In effect, he was able to lower federal taxes such that a man with a million-dollar annual income had his federal taxes reduced from $600,000 to $200,000. Even the Supreme Court played a role in expanding the gap between the classes. In the 1923 case Adkins v. Children's Hospital, the Supreme Court ruled minimum-wage legislation unconstitutional.

53. Revisiting The Stock Market Crash Of 1929 [Free Republic] We are accustomed to viewing the 1929 stock market crash Nothing could be furtherfrom the truth. Understanding the crash and depression requires a study http://www.freerepublic.com/forum/a38ff7b52383b.htm

FreeRepublic .com "A Conservative News Forum" Last ... News/Current Events Opinion (Published) Source: Chuck Morse Published: April 20, 2000 Author: Chuck Morse Posted on 04/20/2000 14:49:06 PDT by Chuckmorse Posted on 04/20/2000 14:49:06 PDT by Chuckmorse Reply Private Reply Top ... To: Chuckmorse Pretty close, Chuck. But don't forget that there were three factors at work, all the domain of the government. The deflation (which you point out) and which was the fault of the Fed-which (as today) was obsessed with INFLATION when prices had actually fallen; The fact that the U.S. was the ONLY nation ON the gold standard after 1931, meaning we were exchanging our gold for their paper. The one good thing FDR did was to take the U.S. off the gold standard, meaning that we didn't have to convert $ into gold, but also . . . we didn't have to convert francs, or yen, or pound sterlings into gold, either. This action immediately stopped the outflow of U.S. gold and solidified the banks. Government micro-policies which were stupid. Both Hoover and FDR engaged in this idiocy. The "check tax," for instance, taxed checks, drying up exchange. The minimum wage brought new employment to a screeching halt. Glass-Steagall dried up investment capital by severing the links with banks. The gold standard, however, was part of the cause insofar as all the international players have to play by the rules, and no one did. Milton Friedman makes this pretty clear.

54. Causes Of The Great Depression office, long after the worst of the depression had hit turning downward even beforeHoover took office in 1929. in the year before the stock market crash of 1929 http://mirrors.korpios.org/resurgent/Causes.htm

CAUSES OF THE GREAT DEPRESSION: A review of Keynesian theory To understand the Great Depression, it is important to know the theories of John Maynard Keynes (rhymes with "rains"). Keynes is known as the "father of modern economics" because he was the first to accurately describe some of the causes and cures for recessions and depressions. In a normal economy, Keynes said, there is a circular flow of money. My spending becomes part of your earnings, and your spending becomes part of my earnings. For various reasons, however, this circular flow can falter. People start hoarding money when times become tough; but times become tougher when everyone starts hoarding money. This breakdown results in a recession. To get the circular flow of money started again, Keynes suggested that the central bank in the U.S., the Federal Reserve System should expand the money supply. This would put more money in people's hands, inspire consumer confidence, and compel them to start spending again. A depression, Keynes believed, is an especially severe recession in which people hoard money no matter how much the central bank tries to expand the money supply. In that case, he suggested that government should do what the people were not: start spending. He called this "priming the pump" of the economy. Indeed, most economists believe that only massive U.S. defense spending in preparation for World War II cured the Great Depression.

55. Great Depression Of The 1930's History Guide .. The History Beat Many economists argue that the Great depression was both caused and prolonged RichardRahn wrote, After the stock market crash in 1929, government revenues http://history.searchbeat.com/greatdepression.htm

Web News Jobs Quick Searches! addresses area codes books cameras classical music directions electronics email search europe maps int'l jobs jobs kitchen maps meta-search movies movie times music news phone numbers software stocks toys traffic tv listings video games comparison shop family fashion gov't ... site map Enter your " City, State ", US Zip Code or ICAO Search Beat Society and Culture History Twentieth Century > Great Depression Amazon.com History Books Books about Iraq History Bestsellers Historical Calendars History Books about Ancient World ... More From Over 300 Stores! Featured Sites Main Causes of the Great Depression - by Paul Alexander Gusmorino Shopping and Product Search Books Apparel Jewelry Popular music Watches Classical music DVD's VHS Videos In Theaters Toys Baby Computer Hardware Electronics Photo Software Garden / Outdoor Living Kitchen for Site Sponsors Autos: Autobytel.com

56. Roaring 20s And The Great Depression History Resources The crash of 1929. The crash of 1929. Dear Mrs. Roosevelt. Documenting America.The Economic Effects On Families Of The Great depression. The Dow 30. The Dust Bowl. http://www.snowcrest.net/jmike/20sdep.html

If you wish to submit an historically based website or find a dead link please email us! All submitted links are reviewed for quality of academic content. Last updated 1/01/2004 The Roaring 20's 1920s.net The 1920s Absinthe Radio Greatest hits of the 1920s-30s Archives of communist radicals of the 1920s-30s Art Deco The Booming 20's The Roaring 20s 1925 - the Year in Review ... Washington As It Was Library of Congress collection The Great Depression The 1930's Dust Bowl 1930s Great Depression Gallery 1930's and 1940's Web Links African-American Life During the Great Depression ... The Great Depression - Documenting America Library of Congress Greatest Films of the 1930s H102 Lecture 18: The Crash and the Great Depression H102 Lecture 19: The Great Depression and the New Deal H102 Lecture 20: New Deal ... National Child Labor Committee Collection (Library of Congress Special Collections) New Deal Network Labor History The New Deal Network: Online Resources New Deal Network: A Guide to the Great Depression of the 1930s New Deal/WPA Art History ... We Made Do - Recalling The Great Depression Links Associated Websites Histor eSearch.com

57. 1929 Cause Crash Market Stock THE STOCK MARKET crash OF 1929 After World War I the United States experienced aneconomic boom based on Did the 1929 crash cause the Great depression ? http://www.lazytrader.com/12/1929-cause-crash-market-stock.html

Learn how to Daytrade Learn How to double your money Daytrading index You are here: Arts Internet Applications 103-002 The Internet Applications site has shifted to http://webraft.its.unimelb.edu.au/103002/pub/ Please alter your bookmarks. Quick Find: Faculty of ... The Crash of 1929 An essay on the events surrounding the financial crisis of October aka the Wall Street Crash stock market , there followed a depression. Economists used a yardstick from the Jazz Age to evaluate this 'correction'; the yardstick was the crash of October Cause I'm in ... Cause of 1929 Stock Market Crash This site provide the information about cause of stock market crash and cause of stock market crash . ... The Cause of Stock Market Crash . While there have been many suggested explanations for the cause of Stock Market Stock Market Crash Causes of the Stock Market Crash The 1920's were a time of unbelievable prosperity. The stock market was going through the roof and the United States seemed to have the formula for limitless ... ... the same formula that generated all of that profit would also be the cause of Black Tuesday. ...

58. The Daily Progress In The Depression treatment of the Stock Market crash of 1929 in The the advertisers in the paper afterthe crash added up This Edition Reporting on Key Dates in the depression. http://xroads.virginia.edu/~UG99/walters/crash.htm

October 29, 1929 Charlottesville Feels Little Effect of Stock Market Crash News Stories Editorials Advertising Charlottesville: A Safe Haven On Oct. 29, 1929 the New York Stock Market in plummeted, thrusting the nation into dire economic straits. But in Charlottesville, The Daily Progress focused on the local governor's race where the Democratic nominee, John Pollard became the center of a possible political and racial controversy. The story regarding the stock market crash fell to second on the page a small Associated Press story out of New York with the optimistic headline, "Prices Rally on Stock Market as Demand is Shown." The editors of The Daily Progress elected not to support the Associated Press story with a local story, showing any possible local reaction or business concern to how the crash might affect the local economy. In New York, however, The New York Times' front page was devoted almost entirely to the problems with the stock market, as they story was spread across the page in large font type. The Daily Progress , however, chose not to emphasize the crash as a matter of importance for readers in the Charlottesville/Albemarle County area.

59. Extracts From "The Great Crash: 1929" By John Kenneth Galbraith (First Published Extracts from The Great crash 1929 , John Kenneth Galbraith, First in assessingthe causes of depression none is to be assigned to the stock market crash. http://lachlan.bluehaze.com.au/books/galbraith_1929crash.html

This Webpage Page in No Frames Mode Welcome to Lachlan Cranswick's Personal Homepage in Melbourne, Australia Extracts from "The Great Crash: 1929" by John Kenneth Galbraith (First Published 1955; 1961 Reprint) (Made do with this on the day (a good read): was not having success finding any K. R. Popper books in the Monash University bookstores - they had Marx, Hegel, Wittgenstein, etc - but no Popper. Australian academic and university standards have been documented as going down! This is more evidence?) Lachlan's Homepage is at http://lachlan.bluehaze.com.au Back to Lachlan's Homepage What's New at Lachlan's Homepage Historial things, Literature and Poetry Literature ... Beard: An Economic Interpretation of the Constitution of the United States Extracts from "The Great Crash: 1929", John Kenneth Galbraith, First Published 1955 The Crash of 1929 by John Kenneth Galbraith: http://www.btinternet.com/~dreklind/thecrash.htm The Crash of 1929 by John Kenneth Galbraith: http://hallbusinesses.com/biographies_primers/62.shtml The Crash of 1929 by John Kenneth Galbraith: http://www.amazon.com/exec/obidos/ASIN/0395859999/ref=ase_superstarinvesto/103-0508799-0839853

60. ECONnections: Lesson 10: Where Did All The Money Go? a brief passage that poses the mystery, How did the Great depression happen? As ReserveSystem s role in the economy, and the stock market crash of 1929. http://www.e-connections.org/lesson10/

Lessons: Trade in Colonial America / NAFTA Timing is Everything Developing a Financial Investment Portfolio Widgets: Producing More, Using Less ... Lowell Workers and Producers Respond to Incentives WHERE DID ALL THE MONEY GO? The Great Depression Mystery An update and computer application of Unit 7, Lesson 1 from Eyes on the Economy Volume II Go to the Teacher Version Introduction History During the 1920s, the United States as a whole, with the exception of the farmers, enjoyed prosperity. The seeming affluence of the Roaring Twenties began to evaporate in 1929. By 1932, 12 million people were out of work. Mystery The American economy went from unprecedented economic growth in the 1920s to unprecedented misery in the 1930s. Why? Economic History Among the major reasons for the Great Depression were overproduction, restrictive trade policy, speculation in the stock market based on buying stock on credit, problems with the banking system, and tax policy. What began as a mild recession following a lengthy period of economic expansion soon became a depression. By the 1930s the amount of money in circulation had drastically decreased. Lesson Description Part 1 Activity #1 - (PDF 8k - 1 page) Clue Sheet #1 - (PDF 10k - 3 pages) R ead Activity #1 that focuses on the contrasts between the 20s and the 30s and poses the mystery "What caused the Great Depression?"

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