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

Slides:



Advertisements
Similar presentations
Causes of the Stock Market Crash
Advertisements

The Great Depression Depression
The Great Depression.
BOOM (Prosperity) High Consumer Spending (Cash in Victory Bonds, Installment Buying) Federal Reserve Keeps Interest Rates Low: Easy Credit for Individuals.
The Market Crashes The market crash in October of 1929 happened very quickly. In September, the Dow Jones Industrial Average, an average of stock prices.
The Great Depression.
The Great Depression The Party’s over. Twenties Prosperity Many Americans believed the post-war economic boom had limitless growth. National income rose.
The Causes of the Great Depression. The Postwar Economic Boom The years following WWI were known as the “Roaring Twenties” The Boom affected America in.
Causes of the Great Depression
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.
Factors in the Stock Market Crash and the Causes of the Great Depression Lecture.
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.
PROSPERITY TO THE CRASH. Goals for today  Understand the major causes and effects of the stock market crash and the Great Depression.
Identify the causes and consequences of the great depression.
The Causes of the Great Depression.
The Causes of the Great Depression
Causes of the Great Depression
Causes of the Great Depression
The Great Depression Causes of Economic Collapse.
The Great Depression. Economy Appears Healthy By October 1929, stock values hit $87 billion Since 1914, wages had risen 40 percent Unemployment averaged.
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.
LONG TERM CAUSES OF THE GREAT DEPRESSION
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.
Causes of the Great Depression
Republican candidate Herbert Hoover “A chicken in every pot and a car in every garage” Democrat candidate Alfred E. Smith Outcome: - Hoover wins  Times.
THE START OF THE GREAT DEPRESSION. Definition  Depression – A period marked by less business activity, much unemployment, falling prices and wages, etc.
Optimistic mood where everything seemed fine People put savings into stock market hoping to get rich.
Causes of the Stock Market Crash of Depression : Period of severely reduced economic activity characterized by rise in unemployment.
Americans prosperous called “Roaring 20’s” Depression started in 1929 with the crash of the Stock Market.
Stock Market Crash Economic Changes during the 1920s Republican presidents are Pro-business and follow a laissez-faire policy Many people experience.
The Stock Market Crash Chapter The Nation’s Sick Economy The prosperity of the 1920s was superficial: Major industries are not making a profit;
Warm Up ISN, pg. 65 What do you think is the most important issue facing the president today and why?
The Great Depression.
Causes of the Great Depression. Signs of economic trouble Uneven wealth – 1% of population controlled 34% of the wealth. Living on credit – Installment.
The Great Crash Oct. 29,1929. History of the Federal Reserve System During the 1800s banks often closed during economic crises. People lost what they.
TSW: Discover how the pattern of conspicuous consumption in the 1920s led America into the Great Depression EQ: Economically, what comparisons can you.
Chapter 9 The Great Depression
The Nation’s Sick Economy
Causes of the Great Depression. 6 Causes of the Great Depression 1.Republican domestic and international business policies 2.Unchecked stock speculation.
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.
CAUSES OF THE GREAT DEPRESSION 1.Governmental Economic Policies 2.Unchecked Speculation 3.Weak and Unregulated Banking Industry 4.Overproduction of Goods.
THE GREAT DEPRESSION AND THE NEW DEAL Unit 2: Chapters Notes.
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,
Write a paragraph ISN Page 65 In your opinion, what causes the economy to go bad? Why do we have “good” economic times and “bad” economic times?” Explain.
Causes of the Great Depression. Possible Causes of the Great Depression Stock Market Crash Over production Unequal distribution of wealth Consumerist.
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.
United States History Chapter 15 Crash and Depression ( )
The Great Depression SWBAT: Explain the causes of the Great Depression and how Hoover responded.
CAUSES OF THE GREAT DEPRESSION. Definition of the Great Depression ► An economic depression in the United States and Europe ► Lasted from
Election of 1928  Herbert Hoover (Republican)  Food Administration director in WWI  Al Smith (Democrat)  Men of contrasts.
Post War Economic Boom ► Americans were earning more money than ever in the 1920s. ► Americans made $61 billion in 1922, they made $87 billion by 1929.
Unit 5: The Great Depression and the New Deal 5-1: The U.S. economy crashes.
CAUSES OF THE GREAT DEPRESSION 1.Governmental Economic Policies 2.Unchecked Speculation 3.Weak and Unregulated Banking Industry 4.Overproduction of Goods.
The Causes of the Great Depression. Welcome Back! Please complete RSG 14.1 The Nation’s Sick Economy. If you did not take Test Unit 4, please bring me.
Causes of the Great Depression ( America’s Economic Collapse )
Roots of the Great Depression
Warm Up # 32 Describe what buying on margin is and why it can be so dangerous.
The Great Depression 11.6 Students analyze the different explanations for the Great Depression and how the New Deal fundamentally changed the role of the.
Causes of the Great Depression
Emerging Problems Under Harding and Coolidge, the US became the most wealthy and prosperous nation in the world People buying, producing, and stock.
The Causes of the Great Depression
The Great Depression Causes.
The Nations Sick Economy
Causes of the Great Depression
Objective Students will be able to analyze the causes of the Great Depression by completing a storyboard.
Approaching Depression
Boom Turns to Bust: The Great Depression
GREAT DEPRESSION of the Causes PowerPoint & Notes Set
Presentation transcript:

CAUSES OF GREAT DEPRESSION U.S. History/Gonzalez

Postwar Economic Boom

Post War Economic Boom  Twenties Prosperity:  Americans earning more than ever $61 to $87 Billion.  People were able to buy luxury goods like radios, refrigerators and automobiles.  Depression foreshadowed:  Unemployment was rising, farmers losing land, stock prices dropping. Poor people increased less people could buy luxury goods.

Causes of Great Depression:  Republican economic policies  Unchecked stock speculation  Weak and unregulated banking institutions  Overproduction of goods  Decline of the farming industry  Unequal distribution of wealth

Republican Economic Policies

Republican economic policies Domestic economic policies: – “The business of America is business.” – Trickle down economics: give tax cuts to rich and they will use that $ to reinvest in their companies. – Business got tons of tax cuts. International Economic Policies: – Hawley-Smoot Tariff Act: High tariffs on imported goods was put to protect American goods, but didn’t work. – Did not forgive loans to European Allies for the war

Real Estate and Stock Speculation

 Real Estate speculation:  People began to buy land in California and Florida in an attempt to sell for a quick profit. However the real estate boom went bust when the amount land for sale exceeded the demand for new housing.  Uncheck Stock Market Speculation:  People began to buy and sell stock. They felt that companies stock prices would increase indefinitely. This made stock prices go up artificially and did not represent the actual worth of company.

The Stock Market Crash and the Banking Industry Collapse

 1929 Stock Market Crash  People became nervous of high stock prices. Many investor began to sell their stock and prices came down. Companies slowed production and made less money.  October 29, 1929 “Black Tuesday”- total loss of $16 Billion ($192,054,989, in 2009)  Bank Failures  Lent money to individuals to buy stock, people could not take out money from banks

Why banks failed? 2. Banks lend out money to individuals through loans. 3.Banks lent out too much to people who used money to buy stocks. 4. Banks makes or loses money by investing in companies stock 5. Banks loses money that was deposited by people. 1. Banks get money from people savings or checking

Overproduction

 Agricultural Goods  During WWI, farmers made $ producing food for the War.  Once war was over, there was less demand for food. Farmers could not sell left over food and took a loss.

Decline of Farming Industry

Decline of Farming industry  Because farmers could not sell their crops, many farmers lost their farms.  Dust Bowl: Terrible drought that made soil turn into powdery dust that swept across the middle of U.S.  Millions of farmers from Midwest moved to California were they lived in makeshift shacks and shanties outside city limits.

Unequal Distribution of Wealth

 Gap between Rich and Poor:  1929, 1% of population owned 59% of wealth in U.S>  60% of population lived below the minimum subsistence level of $2,000.  Rich were getting richer and poor were getting poorer.