Ranking Issues of the Great Depression Essential Question: What were the most significant issues related to the depression in American history?

Directions With your partner, complete the “Ranking the Issues” Worksheet First, read the card and put it into your own words (1-2 sentences) Second, respond to the question posed at the end of the card Repeat until you have read all ten cards Rank the issues 1-10 (1=most important, 10=least) Answer the follow-up questions

Reviewing Pairs Activity – Modern Connections As we review, keep your packet out Be prepared to share both your summaries and responses to the question for each topic Add summaries or question responses as needed Ask questions when you need a concept repeated

Unemployed & Homeless Lower Demand & Wages Summary: People who do not work, spend less People unable to find a job may be willing to work for less {Q} – How can economic depression impact workers’ rights or benefits? {A} – It is difficult to gain benefits (including pay) when everyone is struggling (including businesses) {A} – Hypothetical of unemployed for 1 month vs. unemployed for 1 year.

Savings, Homes, Businesses & Farms Lost Summary: People purchased more than they could afford (with credit) With the Stock Crash, people could not afford to make payments  leading banks to fail {Q} – What does living on the “edge of their means” represent? Give a hypothetical example. {A} – Buying more than one can comfortably afford (no wiggle room) {A} – Hypothetical – Mr. C’s car

Living Reasonably Monthly Payment – under $ Living on “the edge of my means” Monthly Payment – over $ 1,500

Consumer Purchasing Falls Summary: People are reluctant to spend during a crisis and when little credit is available Credit needed for big purchases {Q} – What problems or situations, in America today, might prompt someone to stop spending as much money as they once did {A} – Lose a job, get hurt, prices go up, major family change, previous large purchase

Agricultural Prices Bottom Out Summary: Oversupply and under-consumption drive down prices WWI created a high supply and farmers’ took out loans to keep up with rising demand {Q} – Explain how agricultural prices reflect the principles of supply and demand during this time. {A} – Chart on next slide {A} - Stub Hub (

Industry’s Profits Fall Summary: Goods cost less due to mass production (assembly line and mechanization) After the crash, fewer people were buying goods that were at already lower prices {Q} – Connect and explain how this issue related to one other issue {A} – Worker’s Laid off is a result of this topic

Worker’s Laid Off / Sharecroppers Evicted Summary: Workers are typically the # 1 cost for businesses What are other costs??? (Quick Brainstorm) As a way of cutting cost, workers are laid off {Q} – How is this related to 21 st Century outsourcing? {A} – Both are ways of cutting costs {A} – Outsourcing = the practice of cutting costs by laying off workers and hiring cheaper labor {A} – Mr. Clifford’s Cobbler Company

Germany Defaults on Reparations Summary: Reparations = war debt ($ 33 Billion) Dawes Plan – U.S. loans money to Germany  who pays G.B. and France war debt  who pays back the U.S. for loans during WWI {Q} – Make a chart that explains this. {A} – Next Slide {A} – If bizarre, why do it?

Credit Dries Up Summary: After crash, little credit available With little credit, “big ticket” purchases are difficult if not impossible. {Q} – Why is credit so important for economic growth and stability? {A} – Big ticket purchases improve the economy more How many people are needed to produce my cup of coffee? How many people are needed to produce a home? {A} – Credit for Mr. C (college, car, home)

Banks Fail Summary: Banks (and people) had “bad debt” Customers lost faith in banks and went on “runs” {Q} – If banks, or other vital businesses are struggling, should they be considered for aid from the U.S. government? {A} – Yes, that business employs lots of people (they will be fired otherwise) and is key to the economy of the country {A} – No, that business failed (do people get bail outs?) and should not use taxpayer money for bad decisions (and how do we know they will use it correctly)

International Economy Fails Summary: U.S. is the world’s creditor With Stock Crash,, nations across the globe were pulled into the depression {Q} – How did tariffs actually end up hurting more nations’ economies {A} – tariff = a tax on imported goods (sample) {A} – A tariff can stop the flow of goods, countries will not be able to buys goods from one another. {A} – Tariff Examples

Tariff Example Toyota Cost = Tax = Total = Ford Cost = Tax = Total =

Understanding Cause & Effect Use the topics below to create a chart similar to… -Banks Fail- Businesses Fail- Credit Dries Up -Workers Laid Off- People Consume Less -People make a “run on the bank”- People Default on Loans