Causes of the Great Depression
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- Collin Rice
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1 Monday December 1, Why do you think people invest in stocks (the stock market)? 2. Complete the statement: What goes up must. 3. Describe what you think depression means? Causes of the Great Depression Tuesday December 2 Get out Section one Vocabulary notes Wednesday December 3 Thursday December 4 Finish Section 3 Vocabulary Notes DECEMBER 10 page 360 complete 3 R's Worksheet Chapter 11 The Great Depression Over production of goods (Roarin' 20s Overspeculation (Investing on Credit) U.S. Enters the Great Depression America and its Allies win WWI Federal Reserve lowers Interest Rates Stock Market Crash FRD elected based on New Deal policies Click to Learn More... 1
2 Dust bowl the dirty thirties lai P at e Gr ns { The dust bowl was due to poor farming management, drought and under consumption. Wind Erosion created HUGE dust storms that led to more severe problems later. 2
3 Cause #1: Speculation Americans bought stock to get rich Pull Business Profits increased in the 1920's To make money you need money. People borrowed it (margin) When the market decreased, loans were demanded to be repaid Black Tuesday 1929, every one went under and lost all or could not repay Cause #2: Banking Crisis Cause #3: Overproduction People Deposited extra money into banks In the 1920's we got the assembly line for mass production. Banks loaned money to businesses and charged interest More product = more profit (do you agree?) Black Tuesday 1929, no one could repay the banks, so they stopped loaning money Banks started to close so people lost faith and pulled all money out of banks By BT29, more products were available than people cold afford to buy 3
4 Cause #4: Many people in debt by 1929 and could not borrow more money Because no one was buying products companies cut workers. Pull Underconsumption During World War I, farmers had prospered by supplying food for American soldiers and people of war torn Europe. When the war ended those markets disappeared. Consumption of farm products decreased, causing prices to drop. Workers could not buy all foods farmers lost money and the banks took the farms Discussion: Why do you think underconsumption lead to a rise in unemployment? By the late 1920's, manufacturers cut back production. Many businesses decreased production or went bankrupt, both lead to unemployment for many workers. As industry declined, companies laid off workers. 4
5 Drag and Drop the Pictures in the Correct Order &hl=en&sa=n&qscrl=1&nord=1&rlz=1t4acgw_en US397&biw=1603 &bih=720&tbm=isch&tbnid=szehpufjmj84ym: &imgrefurl= deal/ &docid=nigxf7 8bSz8pM&imgurl= his baby now.gif%253fw%253d500%2526h%253d525&w=500&h=525 &ei=mz9jt7mzb5t4gge5q72hdg&zoom=1&iact=hc&vpx=1340&vpy=143 &dur=66&hovh=230&hovw=219&tx=128&ty=108&sig= &page=1&tbnh=155&tbnw=148&start=0&ndsp=24 &ved=1t:429,r:7,s:0 5
6 1932 Presidential Election Republican Herbert HooverVS. Democrat Franklin D. Roosevelt Roosevelt Wins!! Promises: Relief for the Needy Economic Recovery Financial Reform Franklin Delano Roosevelt "FDR" New Deal Hundred Days: March 9 June 16, 1933 Significantly expanded the Federal Government's role in the economy Provided desperately needed services to people in need Fireside Chat: March 12, 1933 (1st of many) Used by FDR to address the nation through live radio Spoke to the nation in clear, simple language to ease their fears Helped him gain approval for New Deal Programs 6
7 Three Critics who felt FDR did not do enough for the poor A mericans 1. Francis Townsend Critics of the New Deal Liberal Critics ~ the ND didn't go far enough to help the poor and to reform the nation's economic system 2. Charles Coughlin Conservative Critics ~ argue that FDR spent too much on direct relief tried to control business. The American Liberty League ~ opposed ND measures. believed it violated respect for the rights of individual and property 3. Huey Long HUEY LONG ( ) was Louisiana's legendary populist Governor, U.S. Senator and favorite son. Poised to run for president on his Share Our Wealth platform, Long was assassinated in 1935 at the age of 42. 7
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