Ch.30 – Causes of the Great Depression EQ: What caused the most severe economic crisis in American History ?
30.1 – Coach Schroeder reads introduction
30.1-2 – Complete Yee-haw chart (think of the quarter for a grade)
30.3 – Complete the chart as shown on your handout in your IAN using the website for the notes.
30.4 – Copy the sentences for section 4 from the website in your IAN.
Section 1-2
Comparing the Yee Haw! Game to History
Classroom Experience
Many students selected the “Go for the Gold!” option with hopes of earning lots
of extra credit.
Some students bought Bonanza Chips to increase their gains.
Point values decreased dramatically in the last round. All but those who chose to
“Hold Tight” lost everything they had and sometimes even more.
Even those who chose to “Play It Safe” lost their extra credit.
Historical Parallels
Many Americans invested in the stock market in the 1920s with hopes of getting
rich.
Many investors bought stock on margin to increase their gains.
The stock market crashed and Americans lost billions of dollars. When brokers
demanded that people repay their loans, many investors went deeply into debt.
The stock market crash led to a banking crisis. Failing banks closed their doors.
People who believed that their deposits were safe sometimes lost everything.
Section 3
Key Causes and Effects of the Great Depression
What caused this economic trend?
What were the effects of this economictrend?
Overproduction
Mass-production and new farming techniques
increased production of goods and farm products.
Underconsumption
People were too deep in debt to borrow more
money.
More products were in the market than people
could afford to buy. People borrowed money to be
able to buy more products, increasing personal debt.
Many people stopped buying goods. Many of those
who could still afford to buy already had what they
needed.
Section 4


Federal Reserve officials raised interest rates. This meant companies couldn’t afford to borrow money to stay in business. Workers lost jobs and couldn’t
keep buying goods. Businesses lost both capital and customers.
Congress passed the Hawley-Smoot Tariff Act, which raised tariffs on imported goods. This caused European countries to also raise tariffs on imported
goods. American goods became too expensive to buy in Europe, and U.S. businesses lost money.