march 31, 2014
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March 31, 2014. No Bellringer Today Turn in Last Week’s Bellringers to the Bin!. Student Learning Map. Student Learning Map. Essential Question. What caused the most severe economic crisis in American history ? - PowerPoint PPT PresentationTRANSCRIPT
March 31, 2014No Bellringer Today
Turn in Last Week’s Bellringers to the Bin!
Student Learning Map
Student Learning Map
Essential Question1. What caused the most
severe economic crisis in
American history?
2. How did the federal
government respond to
the economic collapse
that began in 1929?
Vocabulary
• Black Tuesday• Stock Market Crash• Overproduction• Underconsumption
Tim &
Moby!
NotesCrash &
Depression
The Market Crashes
• Market crash in Oct. 1929 happened quickly• Sept. 1929: Dow Jones Industrial Average
reached an all time high– Dow Jones: Average of all stock prices of major
industries• Oct. 23/24, 1929: Dow Jones plummeted,
caused a panic
The Market Crashes
• Black Tuesday (Oct. 29, 1929): most people sold their stocks, tremendous loss
• Called the Great Crash, total losses = $30 billion
Great Crash Investor
s Businesses and Workers
Investors lose millions.
Businesses lose profits.
Consumer spending drops.
Workers are laid off.
Businesses cut investment and production. Some fail.
BanksBusinesses and workers cannot repay bank loans.
Savings accounts are wiped out.
Bank runs occur.
Banks run out of money and fail.
World Payments
Overall U.S. production plummets.
U.S. investors have little or no money to invest.
U.S. investments in Germany decline.
German war payments to Allies fall off.
Europeans cannot afford American goods.
Allies cannot pay debts to United States.
Great Crash Investors
Investors lose millions.
Businesses lose profits.
Great Crash Investors
Businesses and Workers
Investors lose millions.
Businesses lose profits.
Consumer spending drops.
Workers are laid off.
Businesses cut investment and production Some fail.
BanksBusinesses and workers cannot repay bank loans.
Savings accounts are wiped out.
Bank runs occur.
Banks run out of money and fail.
World Payments
Overall U.S. production plummets.
U.S. investors have little or no money to invest.
U.S. investments in Germany decline.
German war payments to Allies fall off.
Europeans cannot afford American goods.
Allies cannot pay debts to United States.
Great Crash Investors
Businesses and Workers
Investors lose millions.
Businesses lose profits.
Consumer spending drops.
Workers are laid off.
Businesses cut investment and production Some fail.
BanksBusinesses and workers cannot repay bank loans.
Savings accounts are wiped out.
Bank runs occur.
Banks run out of money and fail.
World Payments
Overall U.S. production plummets.
U.S. investors have little or no money to invest.
U.S. investments in Germany decline.
German war payments to Allies fall off.
Europeans cannot afford American goods.
Allies cannot pay debts to United States.
Great Crash Investors
Businesses and Workers
Investors lose millions.
Businesses lose profits.
Consumer spending drops.
Workers are laid off.
Businesses cut investment and production Some fail.
BanksBusinesses and workers cannot repay bank loans.
Savings accounts are wiped out.
Bank runs occur.
Banks run out of money and fail.
World Payments
Overall U.S. production plummets.
U.S. investors have little or no money to invest.
U.S. investments in Germany decline.
German war payments to Allies fall off.
Europeans cannot afford American goods.
Allies cannot pay debts to United States.
Effects of the Great Crash, 1929
The Great Depression
• Economic contraction triggered the most
severe downturn in US history
• GD lasted from 1929 until 1941
• Stock market crash was not the only cause of
the GD
Causes of the Great Depression
• Unstable Economy
–Prosperous economy of the 1920s lacked a firm
base
–Nation’s wealth was unevenly distributed
– Industry produced more goods than consumers
wanted
Causes of the Great Depression
• Overspeculation
– Speculators bought stocks with borrowed
money
• Then pledged those stocks as collateral to
buy more stocks
– Stock market boom was based on borrowed
money
Causes of the Great Depression
• Government Policies
– 1920s: Federal Reserve System cut interest rates
to aid economic growth
– 1929: Limited the money supply to discourage
lending
– Caused there to be too little money in circulation
to help the economy after the stock market crash
Reading Notes 30
Cinderella Man
Bellringer --- You Don’t Have to Write It!
March 26, 2013
Think about it…
What behaviors of the 1920s lead to the Great
Depression?
Grab your book.
Student Learning Map
Student Learning Map
Essential Question
How did the federal
government respond
to the economic
collapse that began
in 1929?
America: The Story
of UsBUST
Reading Notes
31
Bellringer April 1, 2014
How do you think the Great Depression
affected the American public?
No Book Today!
Student Learning Map
Student Learning Map
Essential QuestionHow did
ordinary
Americans
endure the
hardships of the
Great
Depression?
Vocabulary
Hoovervilles Dust Bowl Breadline Soup Kitchen
Vocabulary• Black Tuesday: October 29, 1929, the worst day of
plunging stock market prices during the stock market crash that helped initiate the Great Depression
• Stock Market Crash: in October 1929, the period of plunging stock market prices that helped initiate the Great Depression
• Overproduction: a situation in which more good are being produced than people can afford to buy
• Underconsumption: a situation in which people are purchasing fewer goods than the economy is producing
Vocabulary• Hoovervilles: during the Great Depression, a
shantytown of makeshift dwellings• Breadlines: a line of needy people waiting for
handouts of free food• Soup Kitchens: a place that serves free meals to
the needy• Dust Bowl: an area of the Great Plains of the
United States that suffered severely from wind erosion during the 1930s
Social Effects of the Great Depression
Poverty Spreads• All levels of society faced hardships during the Great
Depression.
• Unemployed laborers, unable to pay their rent,
became homeless.
• Sometimes the homeless built shacks of tar paper or
scrap material.
– Hoovervilles: shanty town settlements named for
President Hoover
Dust Bowl
• Farm families suffered from low crop prices.
• Dust storms ravaged the central/southern
Great Plains region
Dust Bowl– Result of drought and farming practices that removed
the protective prairie grasses
– Area was stripped of its natural soil
– Reduced to dust
– Became known as the Dust Bowl
• Combination of the terrible weather and low prices
caused about 60% of Dust Bowl families to lose their
farms.
Poverty Strains SocietyImpact on
Health
Some people starved and thousands went hungry. Children suffered long-term effects from poor diet and inadequate medical care.
Stresses on Families
Living conditions declined as families crowded into small houses or apartments.Men felt like failures because they couldn’t provide for their families.Working women were accused of taking jobs away from men.
Discrimination Increases
Competition for jobs produced a rise in hostilities against African Americans, Hispanics, and Asian Americans.Lynchings increased.Aid programs discriminated against African Americans.
Cinderella Man
Cinderella ManCharacters to Watch
Jimmy Braddock Mae Braddock
Joe Gould
FYI: This is why we don’t eat in Ms. Murray’s class!