6.01 Notes Outline.pdf - Name Deon Finch Date School BCHS...

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Name: Deon Finch Date: 12/20/2020 School: BCHS Facilitator: 6.01 Notes Outline Lesson 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? A Job What do you find anything unusual about the man’s sign? He is advertising his credentials on his sign. What do you find anything unusual about his situation? No many people need jobs . I. The Crash A. Economy Appears Healthy When President Hoover was elected, he promised “continued prosperity ” as promised throughout 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… John J. Raskob wrote the article “Everybody Ought to be Rich” in which he said, “anyone not only can be rich, but ought to be rich” in our booming economy. The 1920s “seemed” to still be roaring along….. B. Economic Danger Signs/Causes of the Great Depression: There were several economic danger signs which ultimately led to the Great Depression: Uneven Prosperity/Unstable economy Wealth was unevenly distributed. A few families had a majority of the money. Buying on Personal debt increased because so many Americans were buying on credit or borrowed money during the 1920s. Playing the Stock Market /Over Speculation The stock market boom was based on borrowed money and optimism, not real value. A “Get-Rich-Quick” attitude prevailed in the 1920s. 1
Speculation , the practice of making high risk investments in hopes of getting high gain, was widely used in the market. Too many goods, too little demand Industries produced more goods than consumers bought. Overproduction 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 debts owed on their farms, which meant trouble for rural banks. Many farms were sold at auction.

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