The Great Depression Chapter 11, Section 1 Lesson 1: The U.S. economy in the late 1920s. Lesson 1: The U.S. economy in the late 1920s.

Activity 1: Class Notes 1. Economy in the 1920s 1. Economy in the 1920s - production and employment were high - production and employment were high - more Americans than ever owned homes - more Americans than ever owned homes - 80 million Americans per week were going to the movies - 80 million Americans per week were going to the movies - stock prices were rising - stock prices were rising - experts saw no end to the bull market, people were being encouraged to buy stock and make money like everyone else - experts saw no end to the bull market, people were being encouraged to buy stock and make money like everyone else

Activity 1 How does the stock market work? How does the stock market work? - an owner of stock owns a small piece of a corporation - an owner of stock owns a small piece of a corporation - shares of stock are bought and sold at a certain price - shares of stock are bought and sold at a certain price - a buyer hopes that the price of the stock they buy will rise which means there stock has made money (Ex $5 per share goes to $20) - a buyer hopes that the price of the stock they buy will rise which means there stock has made money (Ex $5 per share goes to $20) - a owner of stock will only make or lose money after they sell their stock - a owner of stock will only make or lose money after they sell their stock

Activity 2: Stock market simulation 1. Decide which stocks you want to buy. You have $5,000 to spend. Use all your money (You must buy 4 different stocks) 1. Decide which stocks you want to buy. You have $5,000 to spend. Use all your money (You must buy 4 different stocks) 2. Divide the amount of money you want to invest by the price of the stock to see how many shares you can buy. 2. Divide the amount of money you want to invest by the price of the stock to see how many shares you can buy. example: $1000 divided by Yahoo stock ($100 per share) example: $1000 divided by Yahoo stock ($100 per share) = 10 shares = 10 shares 3. Continue to repeat step number 2 until you have spent all of your money (or as close to all of your money as possible) 3. Continue to repeat step number 2 until you have spent all of your money (or as close to all of your money as possible) 4. Make a list of all the stocks you bought and the price you bought them for on the worsheet provided: 4. Make a list of all the stocks you bought and the price you bought them for on the worsheet provided: Company: Yahoo Company: Yahoo DatePrice of stock# of shares Value Gain or Loss DatePrice of stock# of shares Value Gain or Loss Day 1$ Day 1$

Day 1 You have $5,000 to invest in the stock market. You must buy at least four stocks from the list below: (If you want to divide your money evenly = $1250) You have $5,000 to invest in the stock market. You must buy at least four stocks from the list below: (If you want to divide your money evenly = $1250) Lucent $50 per shareAT&T$50 per share Lucent $50 per shareAT&T$50 per share IBM$100 per shareBoeing $30 per share IBM$100 per shareBoeing $30 per share Cisco Systems$100 per shareAOL$100 per share Cisco Systems$100 per shareAOL$100 per share Walt Disney$100 per shareReal Net$50 per share Walt Disney$100 per shareReal Net$50 per share Yahoo$100 per shareGillette$100 per share Yahoo$100 per shareGillette$100 per share CO$50 per sharePepsi$50 per share CO$50 per sharePepsi$50 per share Dell $30 per shareK-Mart$75 per share Dell $30 per shareK-Mart$75 per share Walmart$100 per shareMarriot$150 per share Walmart$100 per shareMarriot$150 per share Pfizer$100 per shareMattel$100 per share Pfizer$100 per shareMattel$100 per share Coca Cola$75 per shareEMC$150 per share Coca Cola$75 per shareEMC$150 per share

Day 2 Company: Yahoo Company: Yahoo Date Price of stock# of sharesValue Gain or Loss Date Price of stock# of sharesValue Gain or Loss 2. Day 2 $250 (x 10$ Day 2 $250 (x 10$ Write down your new price and multiply by the number of shares you bought to get your new value. Indicate the change in value under the gain or loss column. Write down your new price and multiply by the number of shares you bought to get your new value. Indicate the change in value under the gain or loss column.

Day 2 Lucent Technologies$150 per shareAT&T$150 per share Lucent Technologies$150 per shareAT&T$150 per share IBM$200 per shareBoeing $130 per share IBM$200 per shareBoeing $130 per share Cisco Systems$200 per shareAOL$200 per share Cisco Systems$200 per shareAOL$200 per share Walt Disney$150 per shareReal Net $250 per share Walt Disney$150 per shareReal Net $250 per share Yahoo$250 per shareGillette$200 per share Yahoo$250 per shareGillette$200 per share CO$100 per sharePepsi$150 per share CO$100 per sharePepsi$150 per share Dell $230 per shareK-Mart$175 per share Dell $230 per shareK-Mart$175 per share Walmart$150 per shareMarriot$150 per share Walmart$150 per shareMarriot$150 per share Pfizer$150 per shareMattel$150 per share Pfizer$150 per shareMattel$150 per share Coca Cola$175 per shareEMC$275 per share Coca Cola$175 per shareEMC$275 per share

Activity 3 Signs of Trouble Signs of Trouble 1. Uneven distribution of wealth 1. Uneven distribution of wealth large companies controlled 49 percent of American Industry 2. Rising Debt 2. Rising Debt - Buying on credit or installment buying occurred as people continued to buy more products - Buying on credit or installment buying occurred as people continued to buy more products

Activity 3 3. Speculation in the stock market increased 3. Speculation in the stock market increased - people were buying stock on margin - people were buying stock on margin - this means stock brokers would loan buyers money so they could buy stock - this means stock brokers would loan buyers money so they could buy stock - buyers thought the risk was low because prices were going up - buyers thought the risk was low because prices were going up 4. Goods were flooding the market 4. Goods were flooding the market - too many goods, not enough buyers - too many goods, not enough buyers

Lesson 2: The Crash of the Stock Market Lesson 2: The Crash of the Stock Market

Activity 3 5. Farmers suffered from low crop prices 5. Farmers suffered from low crop prices - there was a surplus of food - there was a surplus of food 6. Economic policies and lack of regulation in the banking industry (sound familiar?) 6. Economic policies and lack of regulation in the banking industry (sound familiar?)

Lesson 2: The stock market crashes Activity 1: September 3, 1929 the Dow reached a high of 381 (What is the Dow Jones Industrial Average?) September 3, 1929 the Dow reached a high of 381 (What is the Dow Jones Industrial Average?) - dominated the news - dominated the news - prices soared far above their real value compared to the company’s earnings and assets - prices soared far above their real value compared to the company’s earnings and assets Stocks begin to slowly fall Stocks begin to slowly fall - some brokers call in their loans - some brokers call in their loans - others began loan more money - others began loan more money - “markets are healthy” - “markets are healthy”

Activity 1 Thursday Oct 24th Thursday Oct 24th - large scale investors began to sell huge amounts of stock causing prices to fall - large scale investors began to sell huge amounts of stock causing prices to fall - however, the market recovered at the end of the day - however, the market recovered at the end of the day Black Tuesday (Oct 29) Black Tuesday (Oct 29) - market started to drop, people panicked and raced to sell their shares - market started to drop, people panicked and raced to sell their shares - phone lines were busy, many people could not get through - phone lines were busy, many people could not get through - traders fought with each other on the floor of the stock market - traders fought with each other on the floor of the stock market - there were little to no buyers, which caused the price to fall drastically - there were little to no buyers, which caused the price to fall drastically million shares were sold million shares were sold - overall losses amounted to 30 billion dollars - overall losses amounted to 30 billion dollars

Day 3 Lucent Technologies$5 per shareAT&T$0 per share Lucent Technologies$5 per shareAT&T$0 per share IBM$1 per shareBoeing $0 per share IBM$1 per shareBoeing $0 per share Cisco Systems$0 per shareAOL$10 per share Cisco Systems$0 per shareAOL$10 per share Walt Disney$10 per shareReal Net $0 per share Walt Disney$10 per shareReal Net $0 per share Yahoo$0 per shareGillette$1 per share Yahoo$0 per shareGillette$1 per share CO$10 per sharePepsi$5 per share CO$10 per sharePepsi$5 per share Dell $2 per shareK-Mart$0 per share Dell $2 per shareK-Mart$0 per share Walmart$5 per shareMarriot$5 per share Walmart$5 per shareMarriot$5 per share Pfizer$0 per shareMattel$0 per share Pfizer$0 per shareMattel$0 per share Coca Cola$5 per shareEMC$2 per share Coca Cola$5 per shareEMC$2 per share

Activity 2Pg 326 Explain how the crash of the market affected individuals, banks, and businesses Explain how the crash of the market affected individuals, banks, and businesses AreaEffect of the Crash AreaEffect of the Crash A. Individuals A. Individuals B. Banks B. Banks C. Businesses D. Overseas C. Businesses D. Overseas

The Great Depression Chapter 11, Section 2 Lesson 3: The Impact on Americans Lesson 3: The Impact on Americans

Chapter 11 Section 3 Lesson 4: Hoover and the Depression Lesson 4: Hoover and the Depression

Activity 1: With your partner, evaluate Hoover’s philosophy and response to the Great Depression. Explain each idea or response and then give us your opinion as to whether or not you agree with his ideas and responses and why. Idea or Program Explanation & Evaluation Idea or Program Explanation & Evaluation 1. Rugged Individualism 1. Rugged Individualism 2. associative state 2. associative state 3. cooperatives 3. cooperatives 4. Reconstruction Finance Corp 4. Reconstruction Finance Corp 5. Smoot-Hawley Tariff Act 5. Smoot-Hawley Tariff Act

Lesson 5: Graphing Economic Date of the Great Depression Lesson 5: Graphing Economic Date of the Great Depression

Answer questions 1-16 in your notebook using the graphs. Answer questions 1-16 in your notebook using the graphs.

Activity 2 Take Cornell Notes under activity 2 as you read Ch Take Cornell Notes under activity 2 as you read Ch

Ch 11 & 12 Lesson 6: What Should Be Done About The Great Depression? Lesson 6: What Should Be Done About The Great Depression?

Activity 1: Read each economic briefing and take a few bullet notes in your notebook. (A-C) Activity 1: Read each economic briefing and take a few bullet notes in your notebook. (A-C) Then, decide which response your group feels is best and explain your answer. Label each Economic Briefing in your notebook (A-D) Then, decide which response your group feels is best and explain your answer. Label each Economic Briefing in your notebook (A-D)

Lesson 7: New Deal Programs Overview Lesson 7: New Deal Programs Overview Activity 1: Complete the chart in your notebook as you learn about the programs of the New Deal Activity 1: Complete the chart in your notebook as you learn about the programs of the New Deal

Lesson 8: New Deal Programs Research A. Background and Overview of your program 1.Early Years 2.Areas impacted B. Impact on Society during the Great Depression 1. Type/Number of Jobs created 2. Projects or work accomplished C. C. Legacy of the Program 1. Impact on Society today 2. Opinions/Evaluation of Program

Lesson 8: New Deal Research With your partner, use your research to do each of the following: With your partner, use your research to do each of the following: A. Create an advertisement or piece of propaganda that the U.S. government would have put out about the your program - Include many specifics which displays how this program is impacting the country B. B. A political cartoon that conveys the perspective of someone who benefitted from the program, someone who was a critic of the program, or what life would be like today if this program had never existed.

Lesson 8: New Deal Research Part C: On the back of your poster or on a separate sheet of paper, list the 5 facts that we should understand based on your advertisement and your political cartoon