Good Afternoon! 1.HOT ROC: President Harding 2.Recipe for a Great Depression 3.FDR and The New Deal Essential Question: How did the Great Depression happen and how did the government respond? Homework: Finish Muckraker Project or any other missing work!

Inquiry Was Warren Harding’s presidency good for America?

The “Roaring” Twenties Rise of Consumerism: a culture of buying things – credit: buy now, pay later – Stock Market: buying and selling parts of companies Rising stock value is the result of Speculation – assume stock is valuable and will continue to increase in value Boom in stocks encouraged during the Republican Era – Laissez Faire: let the economy grow without any government interference or regulations – "Stock prices have reached what looks like a permanently high plateau.“—Irving Fisher

Speculation: An Example Peanut the Dark Blue Elephant Prices: – 1993: $6.99 – 1995: $49.00 – 1998: $1, – 2000: $3, What are the pros and cons of investing in Peanut the Dark Blue Elephant?

The Stock Market Crashes Speculative Bubble: an unrealistic increase in economic value that cannot be sustained – Stocks NOT ACTUALLY THAT VALUABLE September 1929 clear the stock market unstable – Smart investors start selling – Black Tuesday: mass panic. Everyone sells and no one buys

Black Tuesday: October 29, 1929 “On that overcast autumn morning in New York City, rumors swirled through the narrow streets like wind. Something had gone terribly wrong. The stock values weren’t just dropping. They were crashing. America’s banks and businesses were losing money. By afternoon ten thousand people had jammed the streets and sidewalks. Some had climbed onto the statue of Alexander Hamilton outside the stock exchange building because it was the only space left to stand and wait. A reporter for the New York Times described the crowd as ‘wild-eyed’ with fear. Men wept. A few days ago they had been wealthy. Now they were penniless.”

Recipe for a Great Depression Easy Credit  Stock Market Speculation  Stock Market Crashes  Banks run out of money = GREAT DEPRESSION

Hidden Problems in the Economy Unequal distribution of wealth results from pro- business policies of Republicans Overproduction and Underconsumption: more products are being made than people can afford to buy – People buy things using bank loans Banks lose the money when people are unable to pay back loans – Bank Runs: banks run out of cash when people panic and remove their money after the Stock Market Crash

Hoover’s Response portal.com/academy/lesson/president- herbert-hoover-and-the-great- depression.html portal.com/academy/lesson/president- herbert-hoover-and-the-great- depression.html – How did Hoover respond to the Great Depression? – Was his response successful? – How did Americans react to Hoover’s response?

A Tale of Two Presidents Herbert HooverFranklin D. Roosevelt

A New President 1932 Franklin D. Roosevelt elected President – Democrat – Promises the country a “New Deal” “I pledge you, I pledge myself, to a new deal for the American People”— FDR’s Inauguration address – Deficit Spending: government helps by spend money to create jobs and create programs to help people out

The New Deal New Deal: series of laws and government programs aimed at helping people in need – Welfare State: social system where government takes some responsibility for well- being of its people

Structured Intellectual Discussion Was the New Deal a success or a failure? – 35 minutes: With your teammates, read the documents in the New Deal document set. Find five pieces of evidence that support each side. – 15 minutes: Discuss and weigh the evidence you have found for both sides in your group. Reach a group agreement on whether you think the New Deal was a success or a failure.