During the 1920s, the wealthy grew wealthier due in large measure to government fiscal policies that both reduced business regulations and allowed the wealthy to keep more of their money. These reduced regulations and low corporate taxes increased the profits of corporations and made their stocks more valuable. At the same time, the poor and
working classes lost the ability to buy products because their wages stayed the same while prices rose. This reduction in consumer consumption resulted in business _________________ and eventually caused business profits to decline. These factors were an
important cause of the Great Depression.

on margin
New methods of buying products, including the installment plan and buying on credit, became popular during the 1920s. These methods encouraged consumers to buy more than they could afford and to go into debt. Worst of all, banks loaned people money to buy stock with very little money down. The stocks themselves became the collateral for the loan. This was called buying ___ _______. Rising stock prices and the ability of ordinary people to buy stock on credit increased investment in the stock market and inflated the price of stocks above their actual value.

stock market crash
Then, by October 1929, the U.S. economy was beginning to show signs of slowing down. Stockholders feared the economy was ending a period of prosperity and entering a period of recession. This caused some investors to panic and sell their stocks. As more people sold their stock,
other people panicked and sold their stock as well, driving down their prices and causing a ______ _______ ________.

Great Depression
In turn, the stock market crash triggered other economic weaknesses and plunged the United States into the ______ __________–a severe economic recession in the 1930s that affected all the world’s industrialized nations and the countries that exported raw materials to them.

As profits fell and it became clear consumers would need to reduce spending, workers began to lose their jobs. By 1932, the unemployment rate in the United States had reached 25%. Unemployed workers who
had no savings could not pay their debts, and many lost their homes. Homeless and unemployed people settled in camps of shacks and tents in rundown areas. These camps became known as ________________.

Black Tuesday This is the name given to the day in October of 1929 when the stock market crashed. Buying On Margin This is the term to the practice of buying stocks or securities with cash borrowed from a stock …

What is “buying on margin?” people borrowed on margin to buy stocks, all you had to do was put down a small amount of cash to buy each share of stock then you could borrow the rest of the purchase …

Compare the bombing of London and the Holocaust (Axis) to the bombing of Dresden and Hiroshima/Nagasaki (Allies). Describe each and note how they are similar and different The bombing in london and the holocaust, was the results of the tyranny …

Underlying causes of the great depression -lack of diversification -poor distribution of income and purchasing power -overproduction of farming products -lack of diversified economies -concentration of wealth -wages did not rise -political power -credit problems -unemployment rises Political power -church …

stock exchange A place where shares in corporations are bought and sold. (i.e. the New York Stock Exchange) Black Tuesday October 29, 1929; the day the stock market crashed. Lead to the Panic of 1929 WE WILL WRITE A CUSTOM …

Great Depression a time of economic downturn and high unemployment between 1929 and 1941 business cycle the periodic expansion and contraction of the economy WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY $13.90/PAGE …

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