US HISTORY Unit 5 Week 1

Homework for the Week Monday, 12/2 Read and Cornell Notes on p Tuesday, 12/3 Finish the Great Depression Recipe Read and Cornell Notes on p Study vocab Block Day 12/4 & 12/5 Read and Cornell Notes on p Friday 12/6 Study vocab for card quiz on Tuesday. Glossaries are also due.

Agenda, 12/2 New Unit: Great Depression HOT ROC Yee Haw game Interpreting the game Read p.30.1 HW: Read and Cornell Notes on p

HOT ROC What are the pros and cons of speculation?

YEE HAW! Experiential Exercise

Procedure Each pair begins with 5 pts Before each round, you and your partner will decide among the following three options: Hold Tight: Keep what you have Play it Safe: Potential for modest gains Go for the Gold!: Potential for amazing gains The option you choose will determine how many points you earn in that round. The two teams with the highest scores at the end of the game will earn 10 points of extra credit on the final exam.

Procedure Hold Tight Play it Safe Go for the Gold Points earned in the Round Runnin g Total (start with 5 pts.) Round 1 Round 2 Round 3 Round 4 Round 5 Round 6 Round 7 Round 8 Round 9 Round 10 For each round, check the box to indicate which option you are choosing. This must be done before the dice is rolled and cannot be changed After the dice is rolled, determine how many points you earned in that round. After each round, compute and enter your point total in the “Running Total” column We will keep a running total class score as well.

Procedure Hold Tight Play it Safe Go for the Gold Round Round Round Bonanza Chips Time!! You may buy Bonanza chips at this point, which will give you the possibility of increasing your score. 2 Chips mean you can multiply your points earned by 2 for each round. Cost= 5 points 3 Chips mean you can multiply your points earned by 3 for each round. Cost = 10 points Deduct the cost by adjusting the amount in the “Running Total” column.

Procedure Hold Tight Play it Safe Go for the Gold Round Bonanza Chips Bonanza Chips Round Bonanza Chips Bonanza Chips Bonanza Chips Time!! You may buy Bonanza chips at this point, which will give you the possibility of increasing your score. 2 Chips mean you can multiply your points earned by 2 for each round. Cost= 10 points 3 Chips mean you can multiply your points earned by 3 for each round. Cost = 20 points *If you previously purchased two Bonanza chips and you would like to increase your total to 3, the cost is: 8 points. Deduct the cost by adjusting the amount in the “Running Total” column.

Procedure Hold Tight Play it Safe Go for the Gold Round Bonanza Chips Bonanza Chips Round Bonanza Chips Bonanza Chips Round Bonanza Chips Bonanza Chips Round Bonanza Chips Bonanza Chips Round Bonanza Chips Bonanza Chips

Debrief How did you feel when points were rising? How did you feel when the points dropped dramatically? Which of the three game options produced the worst results in the end? How many groups decided to “Go for the Gold” sometime during the game? Why did some groups make other choices? Historical application: Between rounds 4 & 5: widespread speculation in the stock market in the late 1920s Round 6: stock market crash Round 7: People often still bought stocks in the hopes of a quick recovery Round 8: There was a slight increase in the market

Speculation leads to a stock market crash Read 30.1 (p.383) and summarize what it says.

Tuesday, 12/3 HOT ROC Causes of the Great Depression Recipe for a Great Depression HW: Finish Great Depression Recipe

HOT ROC Song Analysis: watch?v=eih67rlGNhU watch?v=eih67rlGNhU Listen to the lyrics What evidence do you hear of life in the 1920s? What evidence do you hear of life in the 1930s?

Causes of the Great Depression Read p and summarize each of the following causes of the Great Depression: 1. A Speculative Boom in the stock market, p A Banking Crisis that wiped out people’s savings, p Overproduction of goods, p A widening gap between rich and poor, p Underconsumption, p Government decides to keep a tight money supply, p Tariffs, p.389

Causes of the Great Depression Review key ideas from Ch. 30 New Vocab: Tariff

Hidden Economic Problems in the 1920s Americans buy goods on credit Debt ( : personal debt doubles from 3.1 billion to 6.9 billion) Americans buy stock! Buying on Margin (speculation) Overproduction of goods Underconsumption Widening gap between rich & poor Why was this a problem

Timeline 1929 October - The stock market crash "Any lack of confidence in the economic future or the basic strength of business in the United States is foolish."--President Herbert Hoover 1930 March - More than 3.2 million people are unemployed President Hoover remained optimistic stating that: "all the evidences indicate that the worst effects of the crash upon unemployment will have passed during the next sixty days.“ 1931 February - "Food riots" begin to break out in parts of the country. People smashed the windows grocery markets and made off with the food. Resentment of "foreign" workers increases along with unemployment rolls.

Federal Reserve System(p.388) Federal Reserve is a government agency started by Woodrow Wilson (p.237) to support and regulate banks. It can set interest rates that banks use with their customers. Interest is the additional money you owe the bank when you borrow. Low interest rates = lots of people borrowing High interest rates = not many people borrowing Interest rates were low in the 1920s, but then raised in Why was this a bad idea?

Government Actions Make Situation Worse President Herbert Hoover’s good intentions backfire Laissez-faire business policies by Republicans were supposed to let business increase Instead it allows speculation like buying on margin to get out of control The Federal Reserve System tightened the money supply to prevent inflation Instead there is not enough money in the economy so it shuts down High tariffs (Hawley-Smoot Tariff Act, 1930) Supposed to protect American businesses Instead it starts a trade war that makes it harder for American businesses to sell goods overseas

Big Government vs. Big Business Did President Hoover respond to the economic crisis using a Big Government or Big Business solution? What were specific steps that he did to help banks and businesses? What might have been a Big Government solution to the economic crisis?

Sugar Cookies PREP TIME: 30 Min COOK TIME: 8 Min SERVES/MAKES: 3 dozen INGREDIENTS 1/2 cup butter 1 cup vegetable oil 2 cup white sugar 2 eggs Dash of vanilla extract 4 cups all-purpose flour 1 teaspoon baking soda 1 teaspoon cream of tartar Sprinkle of salt DIRECTIONS In a large bowl, mix together the butter, oil, and white sugar. Beat in the eggs, one at a time then stir in the vanilla. Combine the flour, baking soda, cream of tartar and salt; stir into the sugar mixture until just blended. Cover and chill dough for at least 3 hours or overnight. Preheat oven to 350 degrees F. Grease cookie sheets. Roll the chilled dough into walnut sized balls. Place them 2 inches apart onto the cookie sheets. Bake for 8 to 10 minutes in the preheated oven. Enjoy!

Recipe for a Depression: You will create a “recipe” that contributed to the Great Depression. Ex… PREP TIME: ___ Years COOK TIME: ___ Months/Years SERVES/MAKES: _____ INGREDIENTS: DIRECTIONS In a large country, mix together ___________. Combine the ___________ Preheat stock market by buying on margin to an overinflated value _______ Bake for ____________. Enjoy!

“Ingredients” to include 1. A Speculative Boom in the stock market, p A Banking Crisis that wiped out people’s savings, p Overproduction of goods, p A widening gap between rich and poor, p Underconsumption, p Tight money supply, p Tariffs, p.389

Block Day, 12/4-12/5 HOT ROC Government Responses to the Great Depression T-Chart Bonus Army activity FDR’s New Deal 1929 vs HW: Read and Cornell Notes on p

HOT ROC What should the government do when the economy is struggling? Deficit Spending? Laissez-Faire? Which of the ideological beliefs in 31.2 is closest to your answer? King Corn Start Time: 1:11:00- 1:14:12 button&wide=1&oref=http%3A%2F%2Fwww.youtube.com%2Fmovie%3 Fv%3DnvMxIEgbsIo%26feature%3Dmv_sr&has_verified=1 button&wide=1&oref=http%3A%2F%2Fwww.youtube.com%2Fmovie%3 Fv%3DnvMxIEgbsIo%26feature%3Dmv_sr&has_verified=1 Fact Sheet: eet.pdf eet.pdf

How bad was the Depression? Between 1929 and 1933, 100,000 businesses failed Corporate profits fell from $10 billion to $1 billon Between 1929 and 1933, over 6000 banks failed—2.5 billion lost in savings By 1933, 13 million workers were unemployed (25% of the work force) and many were underemployed Malnutrition increased, as did tuberculosis, typhoid and dysentery Add unemployment to your glossary

Election of 1928 Hoover, a Republican, won with a landslide victory. Booming economy

Herbert Hoover: Background info Son of a blacksmith Grew up in Iowa. Parents died when Hoover was young Did not attend high school but attended night school Entered Stanford in the University’s first class Became a millionaire "My boyhood ambition was to be able to earn my own living, without the help of anybody, anywhere.” - Herbert Hoover How could Hoover’s background have possibly influenced his response to the Great Depression?

Herbert Hoover’s Beliefs Believed in self-reliance, rugged individualism, and hard work Any government help would encourage people’s dependence on handouts Private charities should help

Government responses to the Depression: Hoover’s Big Business vs. FDR’s Big Government Hoover’s Responses to the Great Depression (p.396 & 397) FDR’s Responses to the Great Depression (p )

Vocabulary terms Add Conservative, Deficit and Liberal to your glossary

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?

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

Bonus Army activity Read and discuss Hoover’s response to the Bonus Army

Responses to the Economic Collapse: 1929 and 2008

What are the similarities between the economic decline of 1929 and 2008? 1929 Heavy borrowing Corruption Unrealistic margins Falling real-estate prices Vastly overvalued stocks Bailout: GM’s Durant, Rockefeller, Lamont Emergency spending programs: New Deal 2008 Heavy Borrowing Corruption Un-backed credit default swaps Plummeting real-estate prices Vastly overvalued stocks Bailout: $700 billion government, Buffett Emergency spending programs: American Reinvestment and Recovery Act

HOT ROC: What are the differences between the economic decline of 1929 and 2008? 1929 Government’s involvement in the economy: 3% Governments did little to directly intervene Massive bank failures: % Unemployment: 25% 2008 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%

Friday, 12/6 HOT ROC: Vocab Card quiz The Century

Review: The Century Stormy Weather elated elated