On a sheet of paper: Use your notes from the speed friending activity to do the following: Name one person you met who your 1920s figure would have been friends with and EXPLAIN why. Name one person you met who your 1920s figure would NOT have been friends with and EXPLAIN why. Staple the speed friending notes and this write together and turn it in on the blue chair when finished.

Presidents of the 1920s https://youtu.be/EthSRi-VxaQ?t=1066 Coolidge (1924-1928): “The business of America IS business”. He took laissez faire approach to gov’ts role in the economy, which allowed for the “boom” but contributed to the “bust”. Hoover (1928-1932): Believed in “rugged individualism”- people should help themselves. After the crash, he encouraged assistance but took no legislative action.

CAUSES OF THE GREAT DEPRESSION Cause # 1 = Over-Speculation Cause # 2 = Increasing Consumerism Cause # 3 = Failures of the Federal Reserve Cause #4 = High Protective Tariffs

Cause # 1 = Over-Speculation “Speculation” - engaging in a risky business venture on the chance that a quick or sizable profit can be made Many people during the 1920s began to heavily speculate in the stock market

The Stock Market Crash of 1929 From 1925-1929 the average value of all stocks tripled

Cause # 1 = Over-Speculation Many investors commonly bought stock ‘on margin’. They only paid for part of the stock and borrowed the rest

Cause # 1 = Over-Speculation Over speculation became very popular and stock brokers and banks were lending out huge sums of money and this made the stock market and the economy very unstable In 1929 the stock market crashed. The prices of stocks plummeted and barrowed money could not be paid back and many banks failed

Cause # 2 = Increasing Consumerism The Industrial Revolution caused the invention and mass production of many new products.

Cause # 2 = Increasing Consumerism Following the gloomy period of WWI, people were more willing to spend money to enjoy life.

Cause # 2 = Increasing Consumerism New advertising methods attracted consumers to buy products they might not want or need. Salesmen were willing to sell products on installment plans (pay some now, pay the rest later), which caused many consumers to over-spend.

Cause # 3 = Failures of the Federal Reserve The Federal Reserve (The FED.) was established as a federal agency to control and regulate the nation’s banking system and the economy The Federal Reserve failed to prevent banks and stock brokers from lending out too much money during the 1920s

Cause # 3 = Failures of the Federal Reserve This led to the failure and foreclosure of one fourth of the banks in the US. This also led to a severe contraction in the nation’s supply of money in circulation

Cause # 4 = High Protective Tariffs TRADE Tariffs - taxes that are added to imported goods. They are designed to protect industries and businesses in the U.S.

Cause # 4 = High Protective Tariffs In response to the U.S. tariffs, the countries of Europe raised their own tariffs

Cause # 4 = High Protective Tariffs Tariffs interfered with world trade because they destroyed foreign markets for American products

Cause # 4 = High Protective Tariffs The Hawley Smoot Tariff was passed in 1930 and was one of the highest tariffs in U.S. history This tariff only made the Depression worse because countries could not help each other

Black Monday October 28th, 1929 A combination of factors prompt a record 16.4 million shares to be sold in one day. Over the next two days, the stock market was down by 25%. By July of 1932, the market was down 90%.

The Stock Market Crash of 1929 Many investors lost their life savings

Important Information I will not be here tomorrow…. Some students have already asked me, and yes you can do corrections/a retake on your last test (Up through next Friday) You will have your Unit 5 Test next Thursday. Along with your binder check.. Midterms are March 27-28. You will get a study guide and we’ll have a review day next Friday End of Quarter is March 30th

The Great Depression

IMPACT OF THE GREAT DEPRESSION

1) Bank Failures When the Stock Market crashed people rushed to the banks to withdraw money Because the banks loaned out so much money they could not pay everyone when they came to withdraw their money

Much of the money was invested in people’s houses and businesses. Banks begin to foreclose on people’s mortgages to get the money back. “Foreclose” – when banks take people’s property when they can’t pay their debts.

BANK FAILURES 1929-1933

This caused thousands of banks to close and many Americans lost their life-savings The U.S. financial system collapsed because the Federal Reserve failed to regulate banks and the stock market

2) Unemployment and Homelessness At the height of the Depression 25% of Americans were unemployed The unemployed soon were unable to pay their rents and were evicted from their homes

Cities and towns throughout the country established soup kitchens and bread lines as local governments tried to feed the poor

The number of homeless multiplied and they began to move into makeshift towns made out of scrap wood and tin shelters (These were called Hoovervilles)

3) Political Unrest and Unions Drastic increases in poverty and unemployment led to the growing militancy and political unrest of labor unions during the 1930s

Example – The Bonus Army – unemployed veterans of WWI protested outside the White House demanding that they should be paid their income “bonus” early

President Hoover used the military to forcefully remove the Bonus Army protestors

4) Farm Foreclosures and Migration The Great Depression hit the farmers in rural America the worst Many farmers destroyed crops in protest rather than sell them for such low prices The banks foreclosed 10% of the nation’s farms and many farmers were forced to migrate.

5) The Dust Bowl During WWI American farmers began to over-farm the Plains

When severe drought struck, the topsoil blew away as huge dust storms that filled the skies

On the back of your guided notes… We will look at photographs from the Great Depression to analyze the impact it had on Americans. You can find the links on the google classroom, or type them into the search bar from the directions on your handout.

No music No phones No sleeping  Bust Video No music No phones No sleeping 