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Where Did All the Money Go?

Part 1

History
During the 1920s, most people in the United States enjoyed prosperity. But the affluence of the Roaring Twenties began to evaporate in 1929. By 1932, 12 million people were out of work.

Mystery
The American economy went from unprecedented economic growth in the 1920s to unprecedented misery in the 1930s. Why?

Assignment
After reading the mystery, go to the Almanac: History & Government website. You will be assigned a five year interval (1920-1924, 1925-1929, 1930-1935). Research these five years on the site and complete that section of Clue Sheet #1. Within groups of three, one for each time period, you will share the information with one another until everyone has completed Clue Sheet #1.

Think about and be prepared to discuss the following questions:

  1. What was happening to consumer prices during the 1920s? 1930s?
  2. Which groups would be most negatively affected by the changes in prices you identified?
  3. What was the trend in the unemployment rate in the 20s? 30s?
  4. Why was that occurring in the 30s?
  5. What was happening to spending by the federal government in the 20s? 30s?
  6. What events might explain government spending patterns in the 20s and 30s?
  7. What events occurred in the U.S. or the world that would affect peoples' lives directly or indirectly in the 20s? 30s? Select events that seem especially important and explain their impact.
Author: Pat Rox
Last modified: 6/6/2013 6:55 AM (EDT)