THE GREAT DEPRESSION Chapter 19 Section 1. The Dow Jones Since 2000 FEBRUARY 22, 2000 - DJIA at 10,305 FEBRUARY 22, 2001 - DJIA at 10,526 (G.W. Bush’s.

THE GREAT DEPRESSION

Chapter 19 Section 1

The Dow Jones Since 2000• FEBRUARY 22, 2000 - DJIA at 10,305• FEBRUARY 22, 2001 - DJIA at 10,526

(G.W. Bush’s first year)• FEBRUARY 22, 2006 - DJIA at 11,101• FEBRUARY 22, 2007 - DJIA at 13,100• FEBRUARY 22, 2008 – DJIA at 12,156• FEBRUARY 22, 2009 - DJIA at 7,187

(Obama’s first year)• FEBRUARY 22, 2010 - DJIA at: 10,383• FEBRUARY 22, 2011 – DJIA at: 12,213 • FEBRUARY 22, 2012 - DJIA at: 12,939• FEBRUARY 22, 2013 - DJIA at: ?????

2010 2013• ATT = 28.36• BRK-HA “ = 129,894• BestBuy “ = 32.44• Coke = 26.56• Cisco = 18.73• Circuit City = 0.0030• Google =

1) Late 1920s – the ____________ fell apart

2) Most Americans lived on less than __________ a year

3) People relied on _____________________ to pay for things that cost a lot of money (like credit cards today)

4) People invested money in the __________________ -

People purchased ____________ in a business

Goal: Become _________!

ECONOMY

$3000

INSTALLMENT PLANS

STOCK MARKET

SHARES

RICH

THE STOCK MARKET

5) In order for people to get rich they _____________

money based on _______________.

They believed the price of stocks would

_____________.

6) Stock prices ______________ throughout the 1920s

7) In autumn 1929, stock prices ___________________

INVESTEDSPECULATION

RISE

WENT UP

PLUMMETED

8) People began to ________ stocks.

As a result, prices began to ___________ some more.

9) On October 29, 1929 – “______________________”

Stock prices __________________ causing widespread panic across the U.S. and world!

10) Overnight, stocks became __________________ and those who borrowed owed __________________ than the stock was worth.

11) Prices would continue to fall for __________________.

SELLFALL

BLACK TUESDAYPLUMMETED AGAIN

WORTHLESSA LOT MORE

3 MORE YEARS

THE DOW JONES INDUSTRIAL AVERAGE• FEBRUARY 22, 2000 - DJIA at 4,000• FEBRUARY 22, 2006 - DJIA at 11,101• FEBRUARY 22, 2007 - DJIA at 13,100• OCTOBER 1, 2007 DJIA at

14,087.55• FEBRUARY 22, 2008 – DJIA at 12,156• FEBRUARY 25, 2009 - DJIA at 7,187 • FEBRUARY 26, 2010 - DJIA at: 10,355• FEBRUARY 28, 2011 – DJIA at: 12,201• FEBRUARY 22, 2012 – DJIA at: 12,955.17

(7:25 am)

2011 2012

• ATT = 28.36 30.34

• BRK-A = 129,894 119,375

• BestBuy = 32.44 25.91

• Coke = 26.56 28.61

• Cisco = 18.73 20.36

• Circuit City = 0.0030 0.0020If you spent $100,000 last year on Coca-Cola, you would have $107,718 today. Your net profit / income would be $7,718. (A return of 7.7%)

If you spent $100,000 on Circuit City, you would only have $66,667 today, or a loss of $33,333 (a loss of 33.3%)

12) The ___________________________ hits the U.S.

13) ___________________ would be out of work

14) Farmers ___________________ on loans and would lose their farms.

They purchased new _______________ and could not pay back the loans.

____________ went out of business.

After WWI, fewer __________ were being sold.

GREAT DEPRESSION

MILLIONS

DEFAULTED

MACHINES

BANKS

CROPS

15) ______________ and ______________ industries grew smaller due to lack of spending money

Smaller ______________ let workers go.

16) In 1932, the U.S. ______________ had fallen apart

and __________________ of businesses had closed.

____________________ could not pay employees

____________________ had lost their jobs

____________________ stockpiled.

Many had less than _____________ a day for food.

CLOTHING MINING

FACTORIES

ECONOMYTHOUSANDS

FACTORY OWNERSMILLIONSUNSOLD GOODS

$1.50

17) Banks _________________ on many farmers’ properties

On one day in Mississippi, _________ of all farmers lost their property

18) _________________ and __________________ were common since many people were without food.

FORECLOSED

25%

BREADLINES SOUP KITCHENS

BREADLINES IN MAJOR CITIES

SOUP KITCHENS

19) TEENS –

There were more than ______________ homeless teens

Since they had no _________, many left home.

Many felt they were _____________ to their families

Some traveled on top and in ________________.

Many were ___________ or __________.

Others died from _____________ and ______________

Some found work __________________________.

250,000

JOBSBURDENS

BOX CARS

INJURED DIED

DISEASEHUNGER

ON FARMS PICKING CROPS

20) The ___________________ had no answers.

_____________________ wanted to help end the Depression.

He felt government ________________ was not the answer.

He wanted ________________ to help themselves.

GOVERNMENT

PRESIDENT HOOVER

CHARITY

AMERICANS

21) Many Americans were _____________:a) Some joined the _____________________.b) Farms ___________________ crops.c) Farmers stopped ___________ from taking their

propertyd) WWI ______________ marched on

Washington, DC 1932 – Known as the “_______________________” Congress had promised ____________ to

them but Hoover rejected them. ___________________ drove out the vets by

attacking them Many Americans saw this and demanded

_____________ to the government

ANGRYCOMMUNISTS

DESTROYEDBANKS

VETS

BONUS ARMYBONUSES

U.S. TROOPS

CHANGE

Vocabulary• Speculation – making a guess as to whether

something will happen

• Stock – a unit of ownership in a business

• Soup Kitchen – place where free food is served to the needy

• Breadlines – a line of people waiting for free food