1 Warm -up During the Depression, the Works Project Administration set up a variety of projects to provide work for unemployed writers, act ors, musicians, historians, and artists. WPA artists, for example, pa inted murals of the American past in many public buildings and c reated posters promoting environmental preservation, worker safety, and other public interest issues. This poster is representative of one type of work done by WPA artists.

1. Assume the role of a WPA artist. Draw or describe your idea for a poster on some topic of importance to society during the 1930s.

2. Draw or describe your idea for a poster that illustrates “the best tradition of the democratic spirit” in today’s society 2 The Stock Market Crash TEKS 1(B), 13(B), 13(C) 3 4 Listen When the economy of the high -flying 1920s crashed in 1929, the bleak years of the Great Depression began. Behind the headlines and photos of stock - buying -and -selling frenzy and destitution grew a debate that cut to the ver y political, social, and economic fiber of the country and changed forever how Americans look at government. 5 Listen During 1929 stock prices continued to climb. In September the Dow Jones Industrial Average , an average of the stock prices of major industries, reached an a ll -time high. In October, however, stock prices began to fall. President Hoover a ssured the nation that the problem was not serious, but many investors rushed to get th eir money out of the market, and stocks dropped even farther. Then on Black Tuesday , October 29, the stock market collapsed in what was called the Great Crash . 6 Listen Stock owners were the first to suffer, but the crash soon spread throughout the economy. Banks lost money on loans and people rushed to get thei r money out of banks, causing bank failures. 7 Listen Businesses cut production, and unemployment rose. Small business es and factories closed, and farm prices plummeted. The Great Depression, the wor st economic downturn in the nation’s history, would last from 1929 until 1941. It cau sed international trade to crumble, affecting the global economy. 8 Listen The Great Crash and Depression were the result of deep underlyin g economic problems in the American economy, including 1. speculation, 2. overproduction, 3. borrowing and buying on credit, and 4. uneven distribution of wealth. 9 The Stock Market Crash

1 Begin Taking Notes 1. What events led to the stock market’s Great Crash in 1929? 2. Why did the Great Crash produce a ripple effect throughout the n ation’s economy? 3. What were the main causes of the Great Depression?

10 The Market Crashes The market crash in October of 1929 happened very quickly. In September, the Dow Jones Industrial Average, an average of st ock prices of major industries, had reached an all time high of 381. On October 23 and 24, the Dow Jones Average quickly plummeted, w hich caused a panic. 11 The Market Crashes On Black Tuesday , October 29, 1929, most people sold their stocks at a tremendous loss. This collapse of the stock market is called the Great Crash . Overall losses totaled $30 billion. The Great Crash was part of the nation’s business cycle , a span in which the economy grows, and then contracts. 12 Effects of the Great Crash, 1929 13 Effects of the Great Crash, 1929 14 The Great Depression The economic contraction that began with the Great Crash trigger ed the most severe economic downturn in the nation’s history —the Great Depression . The Great Depression lasted from 1929 until the United States en tered World War II in 1941. The stock market crash of 1929 did not cause the Great Depressio n. Rather, both the Great Crash and the Depression were the result of deep underlyin g problems with the country’s economy. 15 Underlying Causes of the Depression 16

Business Cycle The periodic growth and contraction of a nation's economy. The Historical Context The Crash of 1929 signaled the end of the economic expansion of the 1920s and the beginning of a prolonged period of economic contraction known as the Great Depr ession. During the Depression, political leaders debated whether to stimulate the economy throu gh higher government spending or to rely on the natural operation of the free market to restore econ omic expansion and prosperity. The Concept Today The American economy continues to alternate between periods of h igher growth and slower growth, or contraction. Both the federal government, through its taxing and spending fiscal policies, and the Federal Reserve, through its monetary policies that regulate the nation' s supply of money, seek to prevent shocks that would bring about severe downturns in the economy.

2 17 18 The Stock Market Crash —Assessment 19 The Stock Market Crash —Assessment 20 QUIZ Put your name, date, and period on a piece of binder paper – number it 1 to 10.

Make sure to title the quiz.

Complete the quiz.

QUIZ 21 Work Look over your notes from today. 1. Answer the 3 questions from today’s lecture. 2. In five sentences, write a brief summary of what we went over in class today. Use the highlighted key terms in your summary! Title the paper the same as the Lecture Notes. Make sure to put your Name , Date , and Period in the upper right hand corner of your page. Turn this in at the beginning of class tomorrow – put it in the hand -in/collection basket. Worth 25 out of 100 points for this week’s Daily grade.

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