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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 situa±on?I. The CrashA. Economy Appears HealthyWhen President Hoover was elected, he promised “con±nuedprosperity” as promised throughoutthe 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…John J.raskobwrote the ar±cle “Everybody Ought to be Rich” in which he said, “anyone not onlycan be rich, but ought to be rich”in our booming economy.The 1920s “seemed” to s±ll be roaring along…..B. Economic Danger Signs/Causes of the Great Depression:There were several economic danger signs which ul±mately led to the Great Depression:unevenProsperity/Unstable economyBuying oncreditPlaying thestock market/Over Specula±onThe stock market boom was based on borrowed money and op±mism, not real value.Wealth was unevenly distributed.A few families had a majority of the money.Personal debt increased because so many Americans were buying on credit or borrowed moneyduring the 1920s.A “Get-Rich-Quick” a²tude prevailed in the 1920s.specula±on, the prac±ce of making high risk investments in hopes of ge²ng high gain,was widely used in the market.
Too many goods, too li³le demandIndustries produced more goods than consumers bought.Trouble forfarmersTrouble forworkers-Many factory workers s±ll 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. Poli±cians, businessmen, and bankers tried to keep investors from overreac±ng, but onthe following Tuesday, October 29, 1929,black tuesday, the stock market crashed.

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Term
Spring
Professor
Mr. killian
Tags
Franklin D Roosevelt, Wall Street Crash of 1929, President Hoover

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