Depression Causes

C D B A E/A

US Economy 1914-1950 WWI 20s Depression New Deal WWII There was a huge increase in war goods needed to fight WWI. The drop after WWI was slightly recovered during the 20s because of ads, the car and credit. During the Depression, the economy suffered a decline and a slight recovery during the New Deal. However, the real recovery was WWII. Thus the New Deal FAILED!

Ford’s 5.00 Day Why did Henry Ford want to pay his workers more money? What were the psychological and social limitations of Ford’s strategy? What was Ford’s Sociological Department?

1. Removed skill from labor Taylor 1. Removed skill from labor 2. Top down management Ford 1. Increase wages 2. Use of Sociological Department Increase the production of the worker

Production Group Number Hour Per 8/Hours 5 Days Working

Modern Times Clip Connect simulation to video clip

Directions: Think about the possible outcomes of each scenario Directions: Think about the possible outcomes of each scenario. Would the scenario cause an economic increase or decrease and why?

WWI is Over

Inflation causes prices to go up so the government tightens up credit

Removal of money from the economy

European nations rebound after WWII and can now produce needs and wants on their own

Credit

Ads

Surplus Up and Wages Down

Banks Closing Down and Not Distributing Deposited Money

Americans Start to Save Money In their Homes

Americans Lose their Jobs

Stock Market Crash Causes American Companies to Lose Capital

The Ferris Wheel: to understand this section you must remember WWI and the loans to European Nations. During the war, American banks lent money to the Allies. The Allies then used that money to buy American war related war goods. That is the reason for the Allied Powers demanding German reparation payments. US loans money to the Allied Powers Germany pays reparations Allies receive money from Germany to pay back Americans

How did Germany pay during the 20s?

US lends money to Germany US loans money to the Allied Powers Germany pays reparations Allies receive money from Germany to pay back Americans

Stocks During the Depression You all have 100.00 to either: Buy stocks Save your money Put it in the bank

You all have 100.00 to either: Buy stocks Save your money Ford Sheer Metal G and E NY Times Citibank Cost: 1.00 .50 3.00 9.00 5.00 You all have 100.00 to either: Buy stocks Save your money Put it in the bank

Sell stocks purchased last round Save your money Put it in the bank Ford Sheer Metal G and E NY Times Citibank Cost: .10 .05 4.00 10.00 5.50 Buy stocks Sell stocks purchased last round Save your money Put it in the bank

News Scher Metal negotiates contract with Ford

Sell stocks purchased last round Save your money Put it in the bank Ford Sheer Metal G and E NY Times Citibank Cost: .30 4.00 5.00 9.99 5.40 Buy stocks Sell stocks purchased last round Save your money Put it in the bank

News Ford increases production due to sales

Sell stocks purchased last round Save your money Put it in the bank Ford Sheer Metal G and E NY Times Citibank Cost: 8.00 4.50 5.50 10.00 7.00 Buy stocks Sell stocks purchased last round Save your money Put it in the bank

Sell stocks purchased last round Save your money Put it in the bank Ford Sheer Metal G and E NY Times Citibank Cost: 10.00 7.50 8.50 11.00 10.00 Buy stocks Sell stocks purchased last round Save your money Put it in the bank

Sell stocks purchased last round Save your money Put it in the bank Ford Sheer Metal G and E NY Times Citibank Cost: .01 Bankrupt 2.50 900.00 17.00 Buy stocks Sell stocks purchased last round Save your money Put it in the bank

Sell stocks purchased last round Save your money Put it in the bank Ford Sheer Metal G and E NY Times Citibank Cost: Bankrupt Bankrupt Bankrupt 10,000 Bankrupt U mad, *click* or nah??? Love, 3B <3 Buy stocks Sell stocks purchased last round Save your money Put it in the bank

Debriefing What motivated you to buy, sell or save? What impact would your decision have on the economy? What if each now has 800.00 extra?

Spare a Dime Song They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. with peace and glory ahead, Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime? Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum! Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime? Say, don't you remember, they called me Al; it was Al all the time. Say, don't you

Essays Link the Roaring 20’s to the start of the Great Depression by focusing on three causes. The New Deal as a solution to the Great Depression. Focus on three causes and three solutions. How would this solution solve the economic problems caused by the Great Depression? The New Deal was a turning point from no restriction capitalism to government restricted capitalism.