LONG TERM CAUSES OF THE GREAT DEPRESSION 1929-1941.

Slides:

Advertisements

Similar presentations

Causes of the Stock Market Crash

Advertisements

Chapter 14 Section 1 Notes  The Great Depression  Key industries (Railroads etc…) Barely made profits  Farmers making more than they could sell  Railroads.

Causes of the Great Depression

Warm-Up People who own stock in companies may receive cash payments based on how much profit the companies make. Name 2 companies you would invest in.

Economic Problems lead to Depression US History Standards: SSUSH17 The student will analyze the causes and consequences of the Great Depression. a. Describe.

And the Stock Market Crash. Industries in Trouble Farmers need a Lift Consumers have less money to spend Living on Credit A New President Events leading.

INDUSTRY KEY INDUSTRIES BARELY MADE A PROFIT SOME INDUSTRIES LOST BUSINESS TO FOREIGN COMPETITION & NEW AMERICAN TECHNOLOGIES SOME INDUSTRIES SUFFERED.

The Great Depression: 4 Causes & A “Spark” Farming Unbalanced economy Credit crisis International Depression “Spark” Black Tuesday.

Ch. 14 Sec. 1 The Nation’s Sick Economy

The Great Depression.  What would happen if you spent more money that you actually had?  What happens when many people and businesses are in that situation?

Baltimore Polytechnic Institute February 24, 2011 U.S. History Mr. Green.

The Great Depression. What was the Great Depression? Time of economic crisis characterized by high unemployment during the 1930s, the beginning is marked.

1920) World economy = a delicately balanced house of cards. Key card that held up the rest was American economic prosperity. HoJun.

The Causes of the Great Depression

The Great Depression Objectives:

Baltimore Polytechnic Institute January 23, 2012 U.S. History Mr. Green.

The Nation’s Sick Economy

Chapter 22 Sections 1 & 2. Industry  Key industries barely made a profit (i.e. railroads, textile, steel)  Some lost business to foreign competition.

Bell Quiz Why did more Americans start living on Credit?

14 sec.1 Nation’s Sick Economy. Economic Troubles Housing boom faded Railroads lost business Mining & lumbering suffered.

CAUSES OF THE GREAT DEPRESSION. THE GREAT DEPRESSION KWL ON YOUR PINK POST IT NOTE WRITE SOMETHING THAT YOU KNOW ABOUT THE GREAT DEPRESSION ON YOUR YELLOW.

BELL QUIZ: USE PAGES )What nickname was given to the day the stock market collapsed on October 29, 1929? 2)How many U.S. banks collapsed by 1933?

THE START OF THE GREAT DEPRESSION. Definition  Depression – A period marked by less business activity, much unemployment, falling prices and wages, etc.

The Nation’s Sick Economy. Industries in Trouble Key industries barely making a profit Mining and lumbering faced diminished demands Key industries barely.

THE GREAT DEPRESSION.

CHAPTER 14 SECTION 1 THE NATIONS SICK ECONOMY MAIN IDEA: As the prosperity of the 1920s ended, severe economic problems gripped the nation.

22.1: The Nation’s Sick Economy OBJECTIVE: Understand the causes of the Great Depression.

Americans prosperous called “Roaring 20’s” Depression started in 1929 with the crash of the Stock Market.

(top left side) Opener: What would happen if you spent more money than you actually had?

The Stock Market Crash Chapter The Nation’s Sick Economy The prosperity of the 1920s was superficial: Major industries are not making a profit;

The Great Depression ( )

False Sense of Prosperity Mood of America optimistic about future Medical advances = life expectancy up 10 years Infant mortality down Standard of living.

The Great Depression “The illusory prosperity and feverish optimism which marked preceding years have given way to fearful economic insecurity and to widespread.

Period 1, 5, & 6  We will examine the causes of the Great Depression  Go over video questions  Chapter 14.1 Notes  Quiz  Chapter 14.2 Reading.

THE GREAT DEPRESSION BEGINS Photos by photographer Dorothea Lange Objective: Analyze the causes of the Depression.

The Nation’s Sick Economy The Great Depression (The Hoover Years):

10/13 Bellringer 5+ sentences It is often thought to be true that it is nearly impossible to “legislate morality”. Many historians would use the 18 th.

The 1920s were a decade of consumer spending and the economy looked healthy on the surface Income did increase in the 1920s, but there were severe problems.

In-class reading and questions.

CAUSES OF GREAT DEPRESSION U.S. History/Gonzalez.

Opening Assignment Would you borrow money to invest in the stock market if it was easily available? What stock would you buy? How might this be very profitable.

Causes of the Great Depression The 1920s were a decade of consumer spending and the economy looked healthy on the surface Income did increase in the 1920s,

Unit #3: 1920’s, GD, New Deal Causes of the Great Depression.

The Nation’s Sick Economy Chapter 22 Section 1 Notes.

The Nations Sick Economy Chapter 14 Section 1 Information from the textbook The Americans, 2006.

Causes of the Great Depression ■The 1920s were a decade of consumer spending & the economy looked healthy on the surface: –Income did increase in the 1920s,

The Great Depression. What was the Great Depression? Time of economic crisis characterized by high unemployment during the 1930s, the beginning is marked.

Causes of the Great Depression. Possible Causes of the Great Depression Stock Market Crash Over production Unequal distribution of wealth Consumerist.

Unit #4: Great Depression & New Deal Causes of the Great Depression.

22-1: The Nation’s Sick Economy. Industry Key industries barely made a profit Some industries lost business to foreign competition and new American technologies.

CAUSES OF THE GREAT DEPRESSION. Definition of the Great Depression ► An economic depression in the United States and Europe ► Lasted from

Aim #63: What were the causes of the Great Depression? Do now! On a separate sheet of paper, explain what you believe was the most significant cause of.

Unit 6 Day 10 (Black Tuesday) Quote: “There is no cause to worry. The high tide of prosperity will continue.” - Andrew W. Mellon, Secretary of the Treasury.

Europe in 20s trying to recover from war War Debt GermanyFrance Great BritainUnited States Difficult for U.S. companies to sell products to Europe Tariff:

THE GREAT DEPRESSION The Nation’s Sick Economy. The future’s so Bright, I gotta wear shades? 1920’s were a prosperous decade to many, but not all. Trouble.

Causes of the Great Depression Causes of the Depression 1. During WWI, Farmers purchased more land and machinery, but after the war... Farmers.

It’s the End of the World As We Know It…

Warm Up # 32 Describe what buying on margin is and why it can be so dangerous.

The Great Depression Causes Review.

Chapter 22 Sections 1 & 2 The nations Sick Economy & Hardship and Suffering during the depression.

How did the Great Depression occur?

The Nation’s Sick Economy

The Great Depression Begins Pages

Warm-up Write an argument explaining why the stock market crashed in Use insights you gained from our simulation.

The Great Depression

THE GREAT DEPRESSION BEGINS

The Nations Sick Economy

World Wide Depression WWII Notes.

Period 1, 5, & 6 We will examine the causes of the Great Depression

Causes of the Great Depression

Presentation transcript:

LONG TERM CAUSES OF THE GREAT DEPRESSION

1. INDUSTRY  Certain industries were no longer making profits (railroad, steel, and coal), due to foreign competition (Why would European industries be cheaper?)  Also, new sources of energy caused the decline in the use of coal.  New home construction also declined, which had a trickle down effect on other industries such as lumber, furniture, and appliances.

AGRICULTURE  Farming suffered the most throughout the 1920s. (result of World War I)  During WWI, farmers grew a surplus of food. To meet the demand farmers took out loans to buy more land or equipment. However, after the war, demand for farm products fell. This also led to the closing of small banks because farmers could not pay back their loans after the war.

CONSUMER SPENDING  The 1920s seems prosperous for most Americans, but most were actually living beyond their means.  Many lived on credit, “buy now and pay later” (installment plan). This created large debt, which led to consumers cutting back on spending.

UNEVEN WEALTH DISTRIBUTION  “The rich get richer, and the poor get poorer.”  Top 5% of Americans controlled all of the wealth in the nation. Whereas, nearly half of the nation’s families earned less that $1,500 per year, then considered the minimum amount needed for a decent standard of living.

STOCK MARKET  Many investors engaged in speculation, the buying and selling of stock to make a quick profit, and buying on margin, paying a small percentage of a stock’s price as a down payment and borrowing the rest.  This generated great wealth, but only on paper. People believed that stock prices would continue to rise, so they could sell the stock, make a profit, and still pay off their debt from buying on margin.  October 29, Black Tuesday- The stock market crashes & the Great Depression begins!