The Great DepressionThe Great DepressionChapter 11, Section 1Chapter 11, Section 1

• Lesson 1: The U.S. economy in the Lesson 1: The U.S. economy in the late 1920s.late 1920s.

Activity 1: Class NotesActivity 1: Class Notes

• 1. Economy in the 1920s1. Economy in the 1920s

• - production and employment were high- production and employment were high

• - more Americans than ever owned - more Americans than ever owned homeshomes

• - 80 million Americans per week were - 80 million Americans per week were going going to the moviesto the movies

• - stock prices were rising- stock prices were rising

• - experts saw no end to the bull market, - experts saw no end to the bull market, people were being encouraged to buy people were being encouraged to buy

stock stock and make money like everyone elseand make money like everyone else

Activity 1Activity 1• How does the stock market work?How does the stock market work?

• - an owner of stock owns a small piece of - an owner of stock owns a small piece of a corporationa corporation

• - shares of stock are bought and sold at a - shares of stock are bought and sold at a certain price certain price

• - a buyer hopes that the price of the stock - a buyer hopes that the price of the stock they buy will rise which means there they buy will rise which means there

stock stock has made money (Ex $5 per has made money (Ex $5 per share goes to $20)share goes to $20)

• - a owner of stock will only make or lose - a owner of stock will only make or lose money after they sell their stockmoney after they sell their stock

Activity 2: Stock market simulationActivity 2: Stock market simulation• 1. Decide which stocks you want to buy. You have $5,000 to 1. Decide which stocks you want to buy. You have $5,000 to

spend. Use all your money (You must buy 4 different stocks)spend. Use all your money (You must buy 4 different stocks)

• 2. Divide the amount of money you want to invest by the 2. Divide the amount of money you want to invest by the price of the stock to see how many shares you can buy.price of the stock to see how many shares you can buy.

• example: example: $1000 divided by Yahoo stock ($100 per share) $1000 divided by Yahoo stock ($100 per share) • = 10 = 10 sharesshares

• 3. Continue to repeat step number 2 until you have spent all 3. Continue to repeat step number 2 until you have spent all of your money (or as close to all of your money as possible)of your money (or as close to all of your money as possible)

• 4. Make a list of all the stocks you bought and the price you 4. Make a list of all the stocks you bought and the price you bought them for on the worsheet provided:bought them for on the worsheet provided:

• Company: YahooCompany: Yahoo• DateDate Price of stockPrice of stock # of shares Value Gain or # of shares Value Gain or

LossLoss• Day 1Day 1 $51$51 4242 21422142 --

Day 1Day 1• You have $5,000 to invest in the stock market. You must buy at least four stocks from You have $5,000 to invest in the stock market. You must buy at least four stocks from

the list below: (If you want to divide your money evenly = $1250)the list below: (If you want to divide your money evenly = $1250)

• Lucent Lucent $50 per share$50 per share AT&TAT&T $50 per share$50 per share

• IBMIBM $100 per share$100 per share Boeing Boeing $30 per share$30 per share

• Cisco Systems$100 per shareCisco Systems$100 per share AOLAOL $100 per share$100 per share

• Walt DisneyWalt Disney $100 per share$100 per share Real NetReal Net $50 per share$50 per share

• YahooYahoo $100 per share$100 per share GilletteGillette $100 per share$100 per share

• Merck@ COMerck@ CO $50 per share$50 per share PepsiPepsi $50 per share$50 per share

• Dell Dell $30 per share$30 per share K-MartK-Mart $75 per share$75 per share

• WalmartWalmart $100 per share$100 per share MarriotMarriot $150 per share$150 per share

• PfizerPfizer $100 per share$100 per share MattelMattel $100 per share$100 per share

• Coca ColaCoca Cola $75 per share$75 per share EMCEMC $150 per share$150 per share

Day 2Day 2

• Company: YahooCompany: Yahoo

• Date Price of stockDate Price of stock # of shares# of shares ValueValue Gain or Loss Gain or Loss•• 2. Day 2 $250 (x 102. Day 2 $250 (x 10 $2500$2500 + 150+ 150

• Write down your new price and multiply by the number of Write down your new price and multiply by the number of shares you bought to get your new value. Indicate the shares you bought to get your new value. Indicate the change in value under the gain or loss column.change in value under the gain or loss column.

Day 2Day 2• Lucent TechnologiesLucent Technologies $150 per share$150 per share AT&TAT&T $150 per share$150 per share

• IBMIBM $200 per share$200 per share Boeing Boeing $130 per share$130 per share

• Cisco SystemsCisco Systems $200 per share$200 per share AOLAOL $200 per share$200 per share

• Walt DisneyWalt Disney $150 per share$150 per share Real Net $250 per shareReal Net $250 per share

• YahooYahoo $250 per share$250 per share GilletteGillette $200 per share$200 per share

• Merck@ COMerck@ CO $100 per share$100 per share PepsiPepsi $150 per share$150 per share

• Dell Dell $230 per share$230 per share K-MartK-Mart $175 per share$175 per share

• WalmartWalmart $150 per share$150 per share MarriotMarriot$150 per share$150 per share

• PfizerPfizer $150 per share$150 per share MattelMattel $150 per share$150 per share

• Coca ColaCoca Cola $175 per share$175 per share EMCEMC $275 per share$275 per share

Activity 3Activity 3

• Signs of TroubleSigns of Trouble

• 1. Uneven distribution of wealth1. Uneven distribution of wealth- 200 large companies controlled 49 - 200 large companies controlled 49 percent of American Industrypercent of American Industry

• 2. Rising Debt2. Rising Debt

• - Buying on credit or installment - Buying on credit or installment buying occurred as people continued buying occurred as people continued to buy more productsto buy more products

Activity 3Activity 3

• 3. Speculation in the stock market 3. Speculation in the stock market increased increased

• - people were buying stock on margin- people were buying stock on margin

• - this means stock brokers would loan - this means stock brokers would loan buyers money so they could buy stockbuyers money so they could buy stock

• - buyers thought the risk was low - buyers thought the risk was low because prices were going upbecause prices were going up

• 4. Goods were flooding the market4. Goods were flooding the market

• - too many goods, not enough buyers- too many goods, not enough buyers

• Lesson 2: The Crash of the Stock Lesson 2: The Crash of the Stock MarketMarket

Activity 3Activity 3

• 5. Farmers suffered from low crop 5. Farmers suffered from low crop pricesprices

• - there was a surplus of food- there was a surplus of food

• 6. Economic policies and lack of 6. Economic policies and lack of regulation in the banking industry regulation in the banking industry (sound familiar?)(sound familiar?)

Lesson 2: The stock market crashesLesson 2: The stock market crashesActivity 1:Activity 1:

• September 3, 1929 the Dow reached September 3, 1929 the Dow reached a high of 381 (What is the Dow Jones a high of 381 (What is the Dow Jones Industrial Average?)Industrial Average?)

• - dominated the news- dominated the news• - prices soared far above their - prices soared far above their

real value compared to the real value compared to the company’s earnings and assetscompany’s earnings and assets

• Stocks begin to slowly fallStocks begin to slowly fall• - some brokers call in their loans- some brokers call in their loans• - others began loan more - others began loan more

moneymoney• - “markets are healthy”- “markets are healthy”

Activity 1Activity 1

• Thursday Oct 24thThursday Oct 24th• - large scale investors began to sell huge - large scale investors began to sell huge

amounts amounts of stock causing prices to fallof stock causing prices to fall• - however, the market recovered at the end - however, the market recovered at the end

of the of the dayday• Black Tuesday (Oct 29)Black Tuesday (Oct 29)• - market started to drop, people panicked - market started to drop, people panicked

and and raced to sell raced to sell their sharestheir shares• - phone lines were busy, many people could - phone lines were busy, many people could

not get not get throughthrough• - traders fought with each other on the floor - traders fought with each other on the floor

of the of the stock marketstock market• - there were little to no buyers, which - there were little to no buyers, which

caused the caused the price to fall drasticallyprice to fall drastically• - 16.4 million shares were sold- 16.4 million shares were sold• - overall losses amounted to 30 billion - overall losses amounted to 30 billion

dollarsdollars

Day 3Day 3

• Lucent TechnologiesLucent Technologies $5 per share$5 per share AT&TAT&T $0 per share$0 per share

• IBMIBM $1 per share$1 per share Boeing Boeing $0 per share$0 per share

• Cisco SystemsCisco Systems $0 per share$0 per share AOLAOL $10 per share$10 per share

• Walt DisneyWalt Disney $10 per share$10 per share Real Net $0 per shareReal Net $0 per share

• YahooYahoo $0 per share$0 per share GilletteGillette $1 per share$1 per share

• Merck@ COMerck@ CO $10 per share$10 per share PepsiPepsi $5 per share$5 per share

• Dell Dell $2 per share$2 per share K-MartK-Mart $0 per share$0 per share

• WalmartWalmart $5 per share$5 per share MarriotMarriot$5 per share$5 per share

• PfizerPfizer $0 per share$0 per share MattelMattel $0 per share$0 per share

• Coca ColaCoca Cola $5 per share$5 per share EMCEMC $2 per share$2 per share

Activity 2Activity 2 Pg 326Pg 326• Explain how the crash of the market Explain how the crash of the market

affected individuals, banks, and affected individuals, banks, and businessesbusinesses

• AreaArea Effect of the CrashEffect of the Crash

• A. IndividualsA. Individuals

• B. BanksB. Banks

• C. BusinessesC. BusinessesD. OverseasD. Overseas

The Great DepressionThe Great DepressionChapter 11, Section 2Chapter 11, Section 2

• Lesson 3: The Impact on AmericansLesson 3: The Impact on Americans

Chapter 11 Section 3Chapter 11 Section 3

• Lesson 4: Hoover and the Lesson 4: Hoover and the DepressionDepression

Activity 1: With your partner, evaluate Hoover’s philosophy Activity 1: With your partner, evaluate Hoover’s philosophy and response to the Great Depression. Explain each idea or and response to the Great Depression. Explain each idea or response and then give us your opinion as to whether or not response and then give us your opinion as to whether or not you agree with his ideas and responses and why.you agree with his ideas and responses and why.

• Idea or ProgramIdea or Program Explanation &Explanation &EvaluationEvaluation

• 1. Rugged Individualism1. Rugged Individualism

• 2. associative state2. associative state

• 3. cooperatives3. cooperatives

• 4. Reconstruction Finance Corp4. Reconstruction Finance Corp

• 5. Smoot-Hawley Tariff Act5. Smoot-Hawley Tariff Act

• Lesson 5: Graphing Economic Date Lesson 5: Graphing Economic Date of the Great Depressionof the Great Depression

• Answer questions 1-16 in your Answer questions 1-16 in your notebook using the graphs.notebook using the graphs.

Activity 2Activity 2

Take Cornell Notes under activity 2 as Take Cornell Notes under activity 2 as you read Ch. 12-1.you read Ch. 12-1.

Ch 11 & 12Ch 11 & 12

• Lesson 6: What Should Be Done Lesson 6: What Should Be Done About The Great Depression?About The Great Depression?

• Activity 1: Read each economic Activity 1: Read each economic briefing and take a few bullet notes briefing and take a few bullet notes in your notebook. (A-C)in your notebook. (A-C)

• Then, decide which response your Then, decide which response your group feels is best and explain your group feels is best and explain your answer. Label each Economic answer. Label each Economic Briefing in your notebook (A-D)Briefing in your notebook (A-D)

• Lesson 7: New Deal Programs Lesson 7: New Deal Programs OverviewOverview

• Activity 1: Complete the chart in Activity 1: Complete the chart in your notebook as you learn about the your notebook as you learn about the programs of the New Dealprograms of the New Deal

Lesson 8: New Deal Programs Lesson 8: New Deal Programs ResearchResearch

A.A. Background and Overview of your programBackground and Overview of your program1.1. Early YearsEarly Years

2.2. Areas impactedAreas impacted

B.B. Impact on Society during the Great DepressionImpact on Society during the Great Depression1. Type/Number of Jobs created1. Type/Number of Jobs created

2. Projects or work accomplished 2. Projects or work accomplished

C.C. C. Legacy of the ProgramC. Legacy of the Program1. Impact on Society today1. Impact on Society today

2. Opinions/Evaluation of Program2. Opinions/Evaluation of Program

Lesson 8: New Deal Lesson 8: New Deal ResearchResearch• With your partner, use your research to do each of With your partner, use your research to do each of

the following:the following:A.A. Create an advertisement or piece of propaganda Create an advertisement or piece of propaganda

that the U.S. government would have put out that the U.S. government would have put out about the your programabout the your program

- Include many specifics which displays how this program - Include many specifics which displays how this program is impacting the countryis impacting the country

B.B. B. A political cartoon that conveys the perspective B. A political cartoon that conveys the perspective of someone who benefitted from the program, of someone who benefitted from the program, someone who was a critic of the program, or what someone who was a critic of the program, or what life would be like today if this program had never life would be like today if this program had never existed.existed.

Lesson 8: New Deal Lesson 8: New Deal ResearchResearch

Part C: On the back of your poster or Part C: On the back of your poster or on a separate sheet of paper, list the on a separate sheet of paper, list the 5 facts that we should understand 5 facts that we should understand based on your advertisement and based on your advertisement and your political cartoonyour political cartoon