SS8H8b

-borrowing more money than could be repaid
-speculating in the stock market
-overproducing farm products
-overproducing industrial products
These events led to

• World War II
• The Great Society
• Hoover's re-election
• The Great Depression

Georgia experienced a severe drought from 1924 to 1927. What conclusion can you make as to how the drought affected Georgia?

• It brought many northern investors to Georgia so that they could buy up large tracks of mostly empty farmland.

• It made rural farmers totally change the cash crops they grew to ones that required much smaller amounts of water.

• It totally changed Georgia’s economy from one that depended on cash crops to one that depended on manufacturing.

• It made the lives of rural farmers even more difficult, adding to the problems of the Great Depression and the boll weevil.

Which TWO events caused an economic depression in Georgia before the Stock Market Crash of 1929?

• Boll Weevil

• Droughts

• Bank failures

• The start of World War I

Which crop did the the Boll Weevil destroy?

• Cotton

• Tobacco

• Silk

• Peaches

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

• Overproduction

• Underconsumption

• Buying on Credit

• Stock Speculation