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DEPRESSION
BEGINS
Economic Boom
• An economic boom occurs when
people are spending money, have
jobs, buy homes, and stock prices are
up.
• The 1920’s was an economic boom for
America.
Industries that started decreasing:
• Agriculture
• Railroads
• Textiles
• Auto
• Housing
• Consumer goods
• Agriculture was the
hardest hit.
• Farmers produced
more food during
WWI. After the
war, people didn’t
buy as much.
Credit vs. Debt
• Credit
– Borrowing money that
you don’t have and
paying it back over
time. • Debt
• Credit cards – The amount of the
• Loans money you owe
• Mortgages
• Car loans
HOOVER WINS
1928 ELECTION
Stocks
• Stocks are pieces of a
company that people
can buy. If a company
does well, the value of
the stock rises. If it
doesn’t do well, the
value drops.
The Stock Market
Stock Market Success Stock Market Fail
• Wal-Mart stock prices • Blockbuster Video
are around $45 for one stocks were $35 a
share. If you buy 100 share. You bought 100
shares, it would cost shares for $3500. The
you $4500. The company goes
company does well and bankrupt and you are
next year the value is forced to sell your
$50 a share. Now, you shares for $10 each.
have $5000 in stock. You lost $2500.
You made $500 in one
year.
THE 1929 CRASH