Objective: Students will begin their study of the Great Depression. Drill: 1. How many of you have bank accounts, cash a check, used a money order or used.

Slides:

Advertisements

Similar presentations

Causes of the Stock Market Crash

Advertisements

Stock Market Crash (1929) Students will understand the causes and importance of the Stock Market Crash –Crash marks the beginning of the Great Depression.

TEKS 8C: Calculate percent composition and empirical and molecular formulas. Causes of the Great Depression.

Chapter 7, Lesson 3 The Good Times End Mr. Julian’s 5th Grade Class.

Chapter 24 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.

Note Page 36 “Causes of the Great Depression” By Morgan J. Burris Lexington Middle School US History.

Bellringer. Causes of the Great Depression Farmers’ crisis/ Over production (surplus of goods, falling prices) Credit purchasing Tariffs (stopped foreign.

The Stock Market Crash Mr. Dodson.

The Stock Market Crash of 1929 and the beginning of the Great Depression.

Ch. 11 The Great Depression

Analyze the causes and consequences of the Great Depression.

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

Stock certificate. “Black Tuesday” headline (October 29, 1929)

Warm-up: 1.How did Henry Ford impact production in the US? 2.What would happen if people saved more than they spent? 3.Spent more than they saved?

The Great Depression The Long Bull Market – this was a long period of rising stock prices known as the bull market. The Long Bull Market – this was a.

The Great Depression Causes of The Great Depression.

DESCRIBE SOCIAL AND ECONOMIC CONDITIONS FROM THE 1920S THROUGH THE GREAT DEPRESSION REGARDING FACTORS LEADING TO A DEEPENING CRISIS, INCLUDING THE COLLAPSE.

THE STOCK MARKET CRASH AND THE GREAT DEPRESSION EVENTS THAT HELPED CAUSE THE STOCK MARKET CRASH: 1. OVERSPECULATION: Stock prices had risen far above the.

Stock Market Crash & the Great Depression Mr. Koch US History B Forest Lake High School.

C AUSES OF THE D EPRESSION O BJECTIVES Discuss the weaknesses in the economy of the 1920s. Explain how the stock market crash contributed to the.

Origins of the Great Depression

11:1 Causes of the Great Depression Election of 1928

Identify the causes and consequences of the great depression.

The Great Depression The Crash & It’s Causes. The CRASH Thursday, October 24, 1929 sell, Sell, SELL! Five leading NY bankers meet at noon, secretly pump.

The Causes of the Great Depression

Causes of the Great Depression

Causes of the Great Depression

Causes of the Great Depression ( ) Short and Long Term.

Causes of Great Depression Chapter 22. Economy in the 1920s: Booming Economy  WWI brought US out of recession  Americans generally optimistic  1925—stock.

Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Objectives Discuss the weaknesses in the economy of the 1920s. Explain how.

71% of the population earned less than $2,500 a year Increasing personal debts due to “credit” Overproduction in factories and farms causing prices to.

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

Causes of The Great Depression

Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression 21.1 Objectives Discuss the weaknesses in the economy of the 1920s. Explain.

Causes of the Great Depression

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?

Optimistic mood where everything seemed fine People put savings into stock market hoping to get rich.

 The 1928 election placed former head of the Food Administration and secretary of commerce, Herbert Hoover, on the Republican ticket against Democratic.

The Great Depression. General Causes of the Great Depression  Global Depression  European World War I debts went unpaid  Consumer debt  Credit  Lack.

Warm Up ISN, pg. 65 What do you think is the most important issue facing the president today and why?

Causes of the Great Depression Mr. Blais America in the World (TVP)

The 1929 Stock Market Crash, Bank Failures and the Great Depression.

Causes of the Great Depression Terms and People Herbert Hoover – former Secretary of Commerce and Republican candidate for President in 1928 speculation.

Economic Troubles on the Horizon Things Aren’t as Good as They Appear to Be!

The Great Depression CAUSES. Warning Signs in the 1920’s 1.Major industries (steel, textiles, railroads) losing money 2.Less consumer demand for “Boom.

Chapter 9 The Great Depression

The Stock Market and the Great Depression Watching the economy crumble.

1928 President Hoover said that the nation was: “nearer to the final triumph over poverty than ever before in the history of any land.” What evidence.

Election of 1928 Incumbent – Calvin Coolidge o “I do not choose to run for President in 1928” – August 1927 Republican – Herbert Hoover o “We in America.

Find a partner and pick up one of the handouts from the front of the room. You only need one handout per pair. Today is going to be AWESOME!!! I.

TEKS 8C: Calculate percent composition and empirical and molecular formulas. Causes of the Great Depression.

Objective: Students will begin their study of the Great Depression by examining its causes & Pres. Hoover response to the Great Depression. Drill: 1. What.

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 Great Depression Production fell, unemployment rose, and the economy went into a period of dramatic decline.

 Though the economy of the United States appeared to be prosperous during the 1920s, the conditions that led to the Great Depression were created during.

THE GREAT DEPRESSION AND THE NEW DEAL Unit 2: Chapters Notes.

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

 The Law of Supply and Demand If the supply of goods increases, and consumer demand stays the same, the price will drop Theoretically, you can never.

Chapter 22 The Great Depression Begins Section 1 Causes of the Depression.

HW: Quiz on 1920s era (notes and 20.1 Vocab) and the Stock Market Crash.

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

The Economy in the Late 1920’s. As you enter the room… Pick up the worksheet and answer the bell ringer question: What factors contributed to the booming.

EQ: How did the Great Depression happen, and how did Americans respond to it? CAUSES AND EFFECTS OF THE GREAT DEPRESSION 1.

Unit 6. The Causes of the Great Depression Chapter 18 Section 1.

Roots of the Great Depression

Essential Declarative:

Causes of the Great Depression

Section 1 The Nation’s Sick Economy

Presentation transcript:

Objective: Students will begin their study of the Great Depression. Drill: 1. How many of you have bank accounts, cash a check, used a money order or used any other financial institution ?

Now explain to me how that financial institution (check, money order, bank account, etc.) it works and why you use it?

Trust (The Great Depression and the New Deal is a story on how the American people trust was lost and regain.)

The Great Depression and the New Deal I. Hoover’s presidency A. Herbert Hoover 1. Claimed in 1928 that "Poverty will be banished from the nation." "Everybody ought to be rich."

B. The Great Crash of Bull market = values of stocks continued to increase during the 1920s.

2. On margin buying of stocks. a. Investors purchased stocks from stockbrokers for as little as 5% down b. When stock values rose, investors would pay back their debt. c. If prices of stock decreased more than 10%, broker would sell stock for whatever price they could get. ancial-spread- betting.com/i mages/margin -calls.gif

Example Day 1-Investor brought stock value at $100 ($5 down, $95 loan) Good case Day2-Stock value rose to $110 and sold it [Bank gets $95 + $5 interest = $100 (Bank )] [Investor gets $5 back + $5 profit = $10 (Investor )]

Bad Case: Day 2: Stock value drops to $90 and sold it. [Bank gets back only $90 out of $95 loan, loses $5  (Remember how do banks get their $)] (Investors loses $5  )

3. Over-speculation: a. Investors gambled that prices would continue to rise b. Artificial rises in stock & commodity values fueled speculation. ww.gol d- eagle.c om/edit orials_9 9/fisher b.gif

4. The Great Crash a. Oct. 29, 1929 ("Black Tuesday") -- Everybody wanted to sell. Within hours, the stock market crashed. b. By mid-November, $25 billion in stock value had disappeared

C. Effects of the Great Depression 1. By 1932, 5,761 banks had failed (22% of total)

2. Unemployment reached 25% by 1932 (13 million people) excluding farmers. a. As high as 33% including farmers; Chicago = 50%! olastic.com/pearl/ timeline/time4.ht m

3. People experienced loss of self-worth a. Many families broke up; marriage rate and birth rate declined. b. 3 million people became hobos and lived in makeshift shacks known as "Hoovervilles

II. Long-term Causes of the Great Depression A. Overproduction of goods by manufacturers 1. Underconsumption -- Ordinary workers and farmers ran out of credit and did not have enough money to keep buying products that were produced. 2. Many warehouses full of products that couldn't be sold. Result: companies lost money. warehouse.com/dog_crat es/images/dogloo- overstock.jpg

B. Uneven distribution of income 1. 5% of the population received 30% of the total income. 2. One-half of country lived below the poverty line. These were potential customers. samples/2000/myk_browne/pages/g reat_depression/wealth_triangle.JP G