Tubular Tuesday, Jan. 6, 2015 Take your seat Take out your notebook Open to notes “The Causes of the Great Depression” Precious Time / Warm -Up Highlight and add in Cornell questions Read over your notes and answer the following questions in 3-5 sentences. 1.What were the causes of the depression as you currently understanding? 2.What did you find interesting about these notes and what do you need more information on?

Today Agenda Precious Time / Warm-Up FN Discussion: “Social and Cultural Tensions” Homework: Read Ch. 8 Sec. 1 – quick reading quiz tomorrow Work on Vocabulary – Quiz Friday

Causes of the Depression , EQ: How did the prosperity of the 1920’s give way to the Great Depression?

1928 Presidential Electoin RHerbert C. Hoover21,391, DAlfred E. Smith15,016, Americans voted overwhelmingly for “Hoover, prosperity, and the continuation of Republican government.”

“I do not believe that the power and duty of the General Government ought to be extended to the relief of individual suffering…The lesson should be constantly enforced that though the people support the Government the Government should not support the people.” —Herbert Hoover, 1930 Laissez-faire Philosophy Hoover will not use the power of the US Gov to help Americans – a reversal of much of the work of Progressives like Teddy Roosevelt

Part One – The Great Depression Worst economic crisis in American history Past = US gov did little/nothing & econ got better US forced to rethink relationship between gov and the well being & welfare of regular people

Causes of the Depression 1. Agricultural Depression demand for farm produce fell after WWI farmer’s couldn’t pay their loans thousands of farms were seized by banks

Causes of the Depression 2. Uneven Distribution of Wealth poor families couldn’t afford to buy goods rich families didn’t buy enough to help the economy 1% made over $10,000 5% made $5,000 – 9,000 29% made $2,000 – 5,000 65% made under $2,000

Causes of the Depression 3. Easy Credit buying on margin real estate speculation average people - no safety net when the depression began 80% of radios purchased on credit 60% of cars purchased on credit

Wacky Wednesday, Jan. 7, 2015 Take your seat Take out your notebook Open to notes “The Causes of the Great Depression” Precious Time / Vocab. Highlight and add in Cornell questions Work on your vocab Add images to your title page

Today Agenda Precious Time / Warm-Up FN Discussion: “Social and Cultural Tensions” Homework: Read Ch. 8 Sec. 1 – quick reading quiz tomorrow Work on Vocabulary – Quiz Friday

The Great Depression Black Tuesday – 10/29/29 JP Morgan tried to buy enough stock to stop the crash 16M shares sold in 1 day Thousands lost their jobs within two months stocks dropped $40 billion about the cost of WWI GE dropped from $400 to $283 a share

Bank Closures “Crisis in confidence” People took their money out of the banks Banks couldn’t survive this

Misguided Monetary Policy Federal Reserve limited money supply in 1929 Not enough money available for loans and growth of business after this

The Great Depression Hawley-Smoot Tariff, 1930 Protect US business, gov raised tax on imports other countries responded with their own taxes international trade plummeted

Essential Question – 1 paragraph, SUTW How did the prosperity of the 1920’s give way to the Great Depression?

2009 Tax Schedule SingleJoint 10%up to 8,350up to 16,700 15%8,351 – 33,95016,701 – 67,900 25%33,951 – 82,25067,901 – 137,050 28%82,251 – 171,550137,051 – 208,850 33%171,551 – 372,950208,851 – 372,950 35%372,951 and above

Gross Income10%AdjustedNet Income $10,000$1,000 $9,000 $30,000$3,000$3,664$27,000$26,336 $67,700$6,770$9,319$60,930$58,381 $100,000$10,000$17,374$90,000$82,626 $250,000$25,000$62,184$225,000$187,816 $1,000,000$100,000$322,224$900,000$677,776 $20,000,000$200,000$6,972,224$19,800,000$13,027,776

Discussion Question Should people pay the same percent in taxes (i.e., 15%) or should it be adjusted by how much they make?