Causes of the Great Depression

This is the process of taking money borrowed from the bank or a broker, and putting it into the stock market

• Buying on Margin 
• Speculation 
• Buying on Credit 
• Overconsumption 

This is the idea that the rich become richer, while the poor become poorer

• Black Tuesday 
• Speculation 
• Unequal distribution of wealth
• Buying on Credit 

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

When a large number of customers line up to withdraw cash from deposit accounts from a financial institution

• Speculation 
• Black Friday 
• Bank Run 
• Underconsumption 

This is making a very risky investment in the stock market, in hopes of earning a large profit

• Speculation 
• Buying on Margin 
• Bank Run 
• Bull Stock 

This cause led many businesses to close, because they were producing more goods than consumers were willing to buy.

• Overproduction 
• Underconsumption 
• Buying on Credit 
• Stock Speculation 

Put 10% down to buy stock, pay rest later.

• Credit
• Debt
• Speculation
• Buy on Margin

President 1928-1932: "People can handle themselves."

• FDR
• Herbert Hoover
• Calvin Coolidge
• Warren Harding

Name of longest economic disaster in US History

• Great Panic
• Great Recession
• Black Tuesday
• Great Depression

What effect did the Dust Bowl storms have on the Great Depression?

• Many farmers were forced to leave the Great Plains.
• Unemployment decreased gradually.
• Many homes along the Mississippi River were flooded.
• Hoover was re-elected as president.

Long period of no rain

• Blizzard
• Tornado 
• Hurricane
• Drought