Module 14, Lesson 3 Guided Notes: Great Depression What caused the Great Depression? 1. gap between rich and poor 2. overproduction 3. decrease in consumer demand 4. buying stack on margin 5. Europe’s lack of repaying WWI loans 6. banks closing 7. dust bowl 8. smoot Hartley Tariff- False sense of Prosperity 1. Over dependent on ___production_______________________________________. 2. __automobile__________________________ was leading industry. 3. __60%_______ of Americans were living below the poverty line. 4. Richest __1%_________ owned 40% of the county’s income. 5. ___unequal___________________ distribution of wealth. Demand and Supply 1. People who could afford automobiles and other ____consumer goods___________ ________________, owned them. 2. Sales fell 3. __production__________________________ stayed the same. 4. Demand for ___agricultural products________________________ ___________________________ rose drastically during the war and then fell. What are some things that we know now that could have been differently : - Business could have increased purchasing - Prices could have been lowered - Could have made it harder
Describe the Smoot-Hawley tariff : - Passed in 1930 - High tax on imports - Less trade with Europe - Europe falls into a decline 1. _France ________________ and ___Germany__________________ are devastated by WWI.
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- Fall '19
- Great Depression, Wall Street Crash of 1929