Minds on – product review On the next slide I’m going to show you a product you’ll all remember (and may of you had, I know!) With your partner/people close to you I want you to discuss: Why were these so darn popular and reasons you think the business was a huge success Reasons you think they went out of business and why these aren’t popular today
Mind’s On – Think Share On your own or with a partner, brainstorm some ideas that would signal that our society is in difficult economic times As a group describe the working year for a construction worker
The Roaring Twenties turn into The Dirty 30s
Causes of the GD - Recap
The business cycle Recession: When work begins to slow down; workers begin getting laid off. Depression: There a few/no jobs. No one is hiring, and there is no investment. Recovery: Things begin picking up. Business/investment returns and people begin getting jobs. Prosperity: The economy is in in full swing. People have jobs, are earning/saving, and are contributing to the economy
Over Production and expansion Definition: During the Roaring 1920s business expanded rapidly and many goods were stockpiled to keep meeting demand.
The Problem: After the crash demand for consumer goods plunged and businesses were forced to lay off workers or close up shop.
Canada’s Dependence on Primary Products Definition: The Canadian economy that developed during the 1920s was based on a few natural resources like pulp and paper, steel, and wheat.
The Problem: When demand for these products dropped Canada had no way to employ people or keep the economy moving. Secondary industries fell apart as well (eg: no wheat farming means no transportation or sale of wheat)
Canada’s Dependence on the US Definition: In the 1920s the Canadian economy became increasingly dependent on the US as a trading partner (Imports/Exports). The Problem: After the crash trade with the US plummeted. “When the US coughs, everyone else get sick.”
Too Much Credit Buying Definition: In the 1920s there was a “buy now pay later” mentality to buy new goods and inventions and even stocks.
The Problem: When people’s investments were wiped out by the crash, many were unable to pay back the money they had borrowed and businesses suffered greatly.
Buying on margin Definition: People were also buying stocks on credit. Problem: When people couldn’t pay the brokers dumped the stock, making the worthless. This was the situation on ‘Black Tuesday’
Canadian Scrapbooks Grab one of the scrapbooks and use the pg. #’s to investigate Life in the Great Depression!
Wrap-up On a piece of paper do the following: Write down the most important Cause of the Depression from today at the top Then draw a cartoon featuring this idea (mad art skills or stick figures, it’s all good!)