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Name:Date:School:Facilitator:6.01 Notes OutlineLesson 6.01 “Boom to Bust”Answer the 6.01 Notes Outline as you review the lesson.Explore #1:The man in the picture is asking for help.What kind of help does he want?What do you find anything unusual about the man’s sign?What do you find anything unusual about his situation?I. The CrashA. Economy Appears HealthyWhen President Hoover was elected, he promised “continuedmoney lending” as promisedthroughout the 1920s.In 1928 stocks had risen by almost 11.4 billion. Unemployment was below 4% and the value of workers’wages had risen by 40% since 1914.The economy “seemed” to be roaring along into the late 1920s…
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Too many goods, too little demandIndustries produced more goods than consumers bought.•meant that many consumer goods would not be sold.Trouble for•Falling farm prices was a problem as early as the mid-1920s. Farmers could not repay the debtsowed on their farms, which meant trouble for rural banks.•Many farms were sold at auction.Trouble for-Many factory workers still suffered long hours and low wages.C.The Great CrashOn October 24, 1929, worried investors began to sell their stocks and prices fell. This day is known asBlack Thursday. Politicians, businessmen, and bankers tried to keep investors from overreacting, but onthe following Tuesday, October 29, 1929,, the stock market crashed.Stock prices fell as investors raced to sell all their stock. About 16.4 million shares were sold or tradedthat Tuesday! This, or collapse of stock market, continued beyond Black Tuesday triggering theGreat Depression.D. The Stock Market CrashesAmericans lost $30 billion in the Great Crash. TheIndustrial Average, which is the averagemeasure of stock prices of major industries, dropped from an all-time high of 381 in September 1929 to198.7 by November 1929.Almost 13 million shares had been sold on Black Thursday. But on October 29th, Black Tuesday, pricesplummeted and more than 16 million shares were sold. Over the next two years, banks closed andpeople lost confidence in the banks. People withdrew their money out of the banks, employers stoppedproducing, and deflation, a fall in prices, began.