Warm Up Discuss Stock Market Simulation What did you learn? What would you do differently/the same? Can you see where people get into trouble?

Objectives Content: Name the causes and effects of the Great Depression. Language: Predict the main reason the stock market crashed.

The Great Depression

The Great Depression The Great Depression was the time period from 1929 to 1941 in which the U.S. economy was in severe decline and millions of Americans were unemployed.

Surprise? There were signs leading to the depression. In the 1920s, some industries struggled including agriculture, railroads, textile mills, and mines. http://viewpure.com/GCQfMWAikyU?start=0&end=0 But, the optimism of the 1920’s concealed problems in the American economy 1:30-2:05

Causes of the Great Depression Too much: Credit Everyone wanted to own the new technology of the time even if they couldn’t afford it right away. They used credit to buy items they could not pay for in cash. Production Businesses kept producing at the same rate, not realizing that less people needed new inventions as time progressed.

Causes of the Great Depression 2. People over speculated on stocks, using borrowed money that they could not repay when stock prices crashed.

Panic Begins On October 23rd, 1929, prices in the stock market dropped sharply. The next day, people tried to sell thousands of stocks before the values dropped even more.

Stock Market Crash of 1929 On October 28th and 29th (Black Monday and Black Tuesday), the prices dropped even more The plunge in stock prices was the first event of the Great Depression. http://viewpure.com/ccNilnpvbJg?start=0&end=0

Causes Continued 3. High tariffs strangled international trade

Causes Continued 4. The Federal Reserve failed to prevent the collapse of the banking industry. Didn’t regulate banks or protect deposits http://viewpure.com/lbwjS9iJ2Sw?start=0&end=0 It’s a Wonderful Life Bank Run Scene

Effects of the Great Depression A large number of banks and businesses failed One-fourth of workers were without jobs

Effects Continued Large numbers of people were hungry and homeless Farmers’ incomes fell to low levels http://viewpure.com/GCQfMWAikyU?start=0&end=0 Letters to Mrs. Roosevelt 3:00-5:10 Causes/Effects 12:45-13:10 Great Depression pictures/life

Warm Up Brother Can you Spare a Dime? http://viewpure.com/eih67rlGNhU?start=0&end=0 Sirloin Steak (per pound) Chicken (per pound) Bread (1 loaf) Potatoes (per pound) Bananas (per pound) Milk ( a quart) Cheese (per pound) Canned Tomatoes Oranges (I dozen) Cornflakes (small box) .29 (cents) .22 .05 .02 .07 .10 .29 .09 .27 .08

Objectives Content: Analyze letters written to Mrs. Roosevelt to understand the problems faced by children in the Great Depression. Language: Record the New Deal Programs and their purpose.

Letters to Mrs. Roosevelt Choose one letter and answer the questions in the chart. Go back and select a different colored letter (please don’t use both pink AND blue - they are about similar topics). Repeat if time allows. Once you have completed your chart, answer the questions on the back of the paper.

The New Deal

Roosevelt is Elected In the 1932 Presidential election, President Hoover ran against Governor Franklin D. Roosevelt (FDR) FDR easily won with the promise of a new deal that would pull the country out of the Depression http://www.americanrhetoric.com/speeches/fdrfirstinaugural.html “The only thing we have to fear, is fear itself” – FDR’s inaugural address

The New Deal Was a 5 part program, designed by Franklin D. Roosevelt to end the Depression.

The New Deal FDR sent Congress many new bills to try to end the Depression in a famous session called the Hundred Days

Hundred Days The bills passed had 3 major goals known as the 3 Rs: Relief for the hungry and jobless Recovery for agriculture and industry Reforms to change the way the economy worked

Major Features of the New Deal Social Security Federal Work Programs Environmental improvement programs Farm assistance programs Increased rights for labor

End of the Depression Though the New Deal programs had many successes, it was ultimately WWII that ended the Great Depression!

New Deal Chart Use the textbook to fill in each program Chart is on page 732 The full name is to the left of the abbreviation Purpose is to the right of the abbreviation SEC is the only one you have to read about on page 734 in order to answer

Warm Up List the causes of the Great Depression.

Objectives Content: Categorize the impact of the major New Deal Programs (providing jobs, aid, or reform). Language: Explain why the New Deal helped.

#1) SSA Social Security Act Set up as a system of pensions for the elderly, unemployed and disabled

#2) FDIC Federal Deposit Insurance Corporation All Savings accounts in approved banks were insured and protected by the government **Remember the Federal Reserve FAILED to protect the banks…The FDIC was created So it would never happen again**

Works Progress Administration #3) WPA Works Progress Administration Employed men and women as artists, writers and musicians and also people to build hospitals, schools, parks, and airports

#4) SEC Securities and Exchange Commission Laws regulating the sale of stocks and bonds in the Stock Market The SEC prevents corporations from cheating and lying about their stock values and gains and losses