
Causes of the Great Depression
Presentation
•
History
•
9th - 10th Grade
•
Medium
Robert Cyr
Used 11+ times
FREE Resource
31 Slides • 18 Questions
1
Causes of the Great Depression
2
The Roaring Twenties
The US economy was awesome
11,000 Americans were millionaires
The US economy was called the 8th wonder of the world.
3
This scene from the movie Jerry Maquire sums up the attitude of Americans in the 1920s
4
Multiple Select
Which of the following goods could Americans buy in the 1920s?
Televisions
radios
cars
computers
telephones
5
6
Poll
What would you have wanted to buy the most in the 1920s
home appliances like a stove, washer, or vacuum
car
radio
telephone
clothes, lots of clothes
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But then this happened
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Multiple Choice
based on the last few slides, what happened in the US at the end of the 1920s?
The US went to war
terrorist bombings hit America again
Americans lost their jobs and could not find new ones
All of the above
11
Multiple Select
Did things get so bad parents had to sell their children or is this FAKE NEWS!
Fake News, there is no way.
It is a real picture
12
The Dust Bowl destroyed farmland
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Homeless families on the move but to where?
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Families had to live in shacks
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So what went wrong?
What caused the Great Depression?
16
Multiple Choice
True or False
During the 1920s, The richest 11,000 families in America had the same amount of money as 11 million poor families?
True
False
17
Multiple Choice
The richest 5% of Americans had how much of America's wealth (money)
5%
26%
33%
55%
18
Cause #1 - A lack of income (money)
People were working in the 1920s
However, a lot of them made less than $1,500 a year.
That wasn't enough money to keep buying things
so how did they buy cars, radios, and home appliances?
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Multiple Select
Did credit cards exist in the 1920s?
yes
no
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Americans owed General Motors nearly $850 million dollars on cars they had bought.
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Multiple Select
How did many Americans buy cars, radios and other consumer goods in the 1920s?
Check all that apply
they used credit cards
they used installment plans (buy now, pay later)
poor people didn't buy things, only rich people did.
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Cause #2 - Easy Credit
People borrowed $ from banks
They bought goods on credit
They spent a lot more money than they should have
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Multiple Select
The easy credit of the 1920s led to Americans
having massive debt they could not pay off
saving lots of $ for the future
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Cause #3 Overproduction
Companies were making goods
Americans were no longer buying them
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Multiple Select
What happens when companies cannot sell their goods.
Check all that apply
They lay off workers (fire them)
They make more goods
They lose $
They close their factory
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Multiple Choice
During the 1920s, if you lost your job you could collect unemployment insurance ($) until you found another job
TRUE
FALSE
30
Multiple Choice
During the 1920s, people could collect welfare?
welfare is when the government gives you money so you can buy food, pay rent etc.
TRUE
FALSE
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Cause #4 The Stock Market Crash
Companies sell shares of stock to make money
A share of stock might cost $100
Most people paid $10 a share and borrowed the rest ($90)
So how do you make money in the Stock Market?
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How to make $
Buy low $10 a share
Sell high $100 a share
Shares of stock go UP when a company is doing AWESOME!
A lot of companies were doing awesome in the 1920s
People bought a lot of stock
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Why did the Stock Market Crash
By October 1929, companies could no longer hide the fact that they were not doing well
Profits were down
workers were getting laid off (fired)
People that had bought stock began to panic.
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That led to a Panic!
People called their stockbrokers and told them to sell their shares of stock
Prices of stock began to go DOWN!
Everyone was trying to sell their stock
A Panic began
The Price of stock crashed
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Black Tuesday October 29th 1929
stock that was worth $45 a share fell to just $5 or even less.
People lost tens of thousands of dollars, some lost millions.
They now had no way to pay off their loans.
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What happened next?
companies lost $
workers got laid off
People couldn't pay back loans
Banks began to close
Factories began to close
The Great Depression began
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43
Multiple Select
Which of the following were causes of the Great Depression?
check all that apply
easy credit
companies weren't making stuff to sell
Overproduction of goods
The Stock Market Crash
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In summary, here are the causes of the Great Depression
a lack of income ($)
Easy Credit = debt
Overproduction of goods
The Stock Market Crash
45
Poll
During a depression where jobs are hard to find, the government should give people money to buy clothes, food and pay rent?
yes
no
46
Poll
During a depression, the government should create jobs for people, even if the jobs are simple jobs that don't pay a lot of $
Yes
No
47
Poll
During a depression, the government should tax rich people more and use the money to help the poor
Yes
No
not sure
48
Poll
If people cannot afford to pay their home loan during a depression, they should NOT lose their home.
Yes
No
Not sure
49
Open Ended
Explain two reasons why the Great Depression happened.
Causes of the Great Depression
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