Postwar ProsperityThe cycle that created the business boom in the 1920's:

Warren Harding and the “Return to Normalcy”

❧ Economic agenda of the three Republican (Harding, Coolidge, and Hoover)presidents of the 1920's 1. cutting taxes to free up capital for

investment 2. cutting federal spending. 3. hands-off approach toward

economics and government4. opposed organized labor and anti-

trust measures.

Protective Tariffs

❧ A protective tariff is a tax on imported goods to make the them less competitive with American-made goods.

❧The tariffs made it difficult for Europe to pay war debts and eventually slowed international trade by provoking other countries to enact high tariffs on U.S. exports.

Yee Haw Game

1. Each pair begins with 5 points.2. Before each round, you and your partner will decide among these 3 options for earning points:

3. For each round, check the box on your scoring sheet to indicate which option you are choosing. This must be done before the die is rolled and cannot be changed.4. After the die is rolled, determine how many points you earned in that round. If you “Go for the Gold!,” points earned are determined by the number rolled. The higher the roll, the greater the number of points.5. After each round, compute and enter your point total in the “Running Total” column.

Hold Tight Play it Safe Go for the Gold!

Scoring- Round 1

1

Scoring- Round 2

Scoring- Round 3

Rounds Hold Tight Play it safe Go for Gold!

1-2 0 +1 +2 +3 +4 +5 +6 +7

3 0 +1 +3 +4 +5 +6 +7 +8

Scoring- Round 4

Rounds Hold Tight Play it safe Go for Gold!

1-2 0 +1 +2 +3 +4 +5 +6 +7

3 0 +1 +3 +4 +5 +6 +7 +8

4 0 +1 +4 +5 +6 +7 +8 +9

Scoring- Round 5

Rounds Hold Tight Play it safe Go for Gold!

1-3 0 +1 +2 +3 +4 +5 +6 +7

3 0 +1 +3 +4 +5 +6 +7 +8

4 0 +1 +4 +5 +6 +7 +8 +9

5 0 +1 +2 +3 +5 +7 +7 +8

Scoring- Round 6

Rounds Hold Tight Play it safe Go for Gold!

6 0 +1 +4 +5 +6 +7 +8 +9

Scoring- Round 7

Rounds Hold Tight Play it safe Go for Gold!

6 0 -10 +4 +5 +6 +7 +8 +9

7 0 -10 -40 -40 -40 -40 -40 -40

Scoring- Round 8

Rounds Hold Tight Play it safe Go for Gold!

6 0 +1 +4 +5 +6 +7 +8 +9

7 0 -10 -40 -40 -40 -40 -40 -40

8 0 -10 -40 -40 -40 -40 -40 -40

Discussion● How did you feel when points were rising? When they dropped

dramatically?

● Which of the three game options produced the worst results in the end?

● How many pairs decided to “Go for the Gold!” sometime during the game?

● How does this show the risk of the stock market?

What is the Stock Market?• Companies raise money by:

1. Borrowing 2. Raise it from investors by selling

them a stake (issuing shares of stock) in the company.

• When you own a share of stock, you are a part owner in the company

• You get a % of the profits, plus if they are successful, the value of each share will go up and you can sell you shares for a profit).

This is your investment

Cha-Ching

Shrinking pie = bad

The 1920’s Stock Market Problems

The Stock Market in the 1920’s was largely unregulated: government did not interfere or create rules for it.

Buying on Margin = Purchasing stock with borrowed money

Causes of the Great Depression – 7C

Overproduction + Underconsumption = more supply than demand.

Rich people have everything they want and poor people can’t take out any more loans/credit

Prices drop. Companies lose profits

Workers get fired – and get poorer

Business Slows

Stock Market Crash (Black Tuesday)October 29, 1929

Bank Failures

Bank Runs = people ran to withdraw their money before the bank lost it.

Banks couldn’t loan money and didn’t have enough cash on hand to cover the withdraws.

Banks shut down across the country – the money was gone.

Economic Depression

● Severe economic recession that lasts 2+ years.○High unemployment○Overproduction○Society deteriorates

U.S. History - The Great Depression - 7C Key Term What caused this economic trend? What were the effects of this economic trend? Over‐production

Under‐consumption

What causes this cycle to collapse?  Provide 2 reasons: 

    

   

    

 

Stock Market Crash 

Black Tuesday:   

   

Economic Factors: 

 

Financial Factors: 

 

Bank Failures 

Bank Runs: 

 

Banks couldn’t: 

 

The money was:  

 

Economic Depression: ________________________________________________________________________________ 

  

   

   

  

   

 

Dust Bowl: _________________________________________________________________________________________  

Manmade Causes: 

 

Environmental Causes: 

 

Okies: