The Response to the Economic Collapse. HOT ROC: What are the similarities between the economic decline of 1929 and 2008? 1929 2008  Heavy borrowing 

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Presentation transcript:

The Response to the Economic Collapse

HOT ROC: What are the similarities between the economic decline of 1929 and 2008?  Heavy borrowing  Corruption  Unrealistic buying stocks on margin and goods on credit  Falling real-estate prices  Vastly overvalued stocks  Bailout by GM’s Durant, Rockefeller, Lamont  Emergency spending programs: New Deal  Heavy Borrowing  Corruption  Risky investments by stock broker companies  Plummeting real-estate prices  Vastly overvalued stocks  Bailout by government, Buffett  Emergency spending programs: American Reinvestment and Recovery Act

HOT ROC: What are the differences between the economic decline of 1929 and 2008?  Government’s involvement in the economy: 3%  Governments did little to directly intervene  Massive bank failures: %  Unemployment: 25% *Add to glossary  Government’s involvement in the economy: 20%  Governments all over the world rushed to prevent a total meltdown  Few bank failures: 0.6%  Unemployment: 9%

New Vocab: Which approach do you think is best for the economy?  Supply Side Economics  The theory that economic growth depends on increasing the supply of goods and services through tax cuts; also known as trickle down economics  Demand Side Economics  The theory that economic growth comes from government spending and regulation of the economy; also known as Keynesian economics

FDR Launches the New Deal’s First Hundred Days  Read over page 398  What 2 programs do you think could most help the US in 1933?  What 2 programs do you think could help the least?  Why?

News broadcasts  You will be working to develop a news broadcast in a group of 3-4 that will teach the class about the impact of the Depression on a particular group.  Homework: Read the assigned section for your news broadcast group.  Performances will be on Friday.

Review  related related  Homework  Study Vocab  Do Makeup Work, due December 9 th