2. Bell Work: Confidence How important is confidence to the health of the economy? Explain.

3. Objectives: Students will be able to… Identify the causes and effects of the Great Depression. Evaluate the role of the federal government in addressing economic problems by comparing Hoover and FDR’s response to addressing the Great Depression.

4. Agenda 1.Bell Work: Confidence 2.Causes of the Great Depression 3.Effects of the Great Depression “Stormy Weather” Testimony on Unemployment

5. 1928 “We in America are nearer to the final triumph over poverty than ever before.” (Hoover)

6. What caused the Great Depression?  Old decaying industrial base  Overproduction  Credit/Installment Plan  Unequal distribution of wealth  Reliance on too few industries  Poor Purchasing Power- Wages slow to increase  Tariffs and European war debt  Stock Market

7. Stock Market Crash Speculation Buying on Margin Falling stock prices Lack of Confidence

8. The Stock Market Crash Thurs, October 24, 1929 prices began to plummet J.P. Morgan and Co. buy millions of dollars of stocks to try to correct the prices Monday prices fall again, and Tuesday, October 29 the market crashes Creditors collect unpaid loans, banks close

10. Great Depression Discussion http://todaysmeet.com/greatdepressionb1 http://todaysmeet.com/greatdepressionb4

11. Effects of the Great Depression Loss of Savings Bank failures Bankrupt businesses High Unemployment Homelessness, Hunger, Illness, Demoralized Increased racial tension

12. Testimony on Unemployment According to Ameringer, what are the most significant problems impacting the American economy?

13. Overproduction and Underconsumption Overproduced goods lead to high supply High supply leads to low price Low Price falls below profit line Goods stop being produced Workers lose jobs and have no money to buy (consume) products

20. Common Beliefs During the Depression IndividualismSelf-Reliance Individual Initiative

21. Hoover’s Outlook “Rugged Individualism” –People rely upon themselves –Oppose federal welfare (help from gov’t) Philosophy of Government

23. Hoover’s Economic Philosophy Govt. should not give $ directly to the people Indirectly – Federal Farm Board –Reconstruction Finance Corporation Self funding Projects –Boulder Dam (Hoover Dam)

24. 1932 Election Results

25. FDR Philosophy of Government Inaugural Address The Brain Trust The Hundred Days Congress New Deal Programs (alphabet soup)

26. New Deal Landmark Domestic Legislation Expanded Role of Government Provided Relief for the Needy Provided Economic Recovery Provided Financial Reform