1. Bellwork How does making more products lead to lower prices?
What do you own if you own stock?
What was the unemployment rate in the US during the Great Depression?

2. Great Depression
Unit 12

3. I. Underlying Problems in the 1920s
Declining demand and overproduction occurred in every major nation
US agriculture collapsed
Germany had hyperinflation
Prices skyrocket
1 lb of bread cost 3 billion on Nov 1st, 1923
1 lb of bread cost 80 billion on Nov 15th, 1923*

4. I. Underlying Problems in the 1920s
Most countries had a bad economic cycle start
Workers stop buying goods
Company make less
Company lays off workers
More workers buy less goods
Company makes less
Company lays off more workers
And on and on and on…

5. CFU What caused the Great Depression? What is hyperinflation?
Describe the bad economic cycle.
Declining demand and overproduction
Prices rise at an extreme rate
Less buying, less profits, more layoffs, less buying, less profits, more layoffs, repeat

6. II. Stock Market Stocks could be bought on margin
Investors could borrow using the stock they owned to buy more stock
You have to pay back the loan no matter what
Speculation led to inflated stock values and the crash
Lots of sellers in October of 1929*

7. II. Stock Market Firms began to call in margin loans
Investors had to sell at low prices to pay back loans
Stock prices plunge
“Black Tuesday” October 29, 1929, the bottom fell out
WAS NOT THE CAUSE OF THE GREAT DEPRESSION!!!*

8. CFU How does margin buying work?
What is the potential problem with margin?
Why were investors getting lower prices?
Black Tuesday was…
You borrow money to purchase more stock
You have to pay back the loan whether you make money or not
The supply was high and demand low
not the cause of the Great Depression!

9. III. Deeper in debt Federal Reserve raised interest rates
If the Fed had lowered interest rates, the Depression MIGHT have been easier
US passed Hawley-Smoot Tariff in 1930
Makes other countries stop buying US goods and place their own tariffs
Less trading occurs when more was needed*

10. III. Deeper in debt Unemployment rate reached 25% in the US
Those with jobs have wages cut
Demand drops farther
Runs on banks
People go to the bank to get their money out
People who are late get no money b/c it is already gone*

11. III. Deeper in debt

12. CFU What could the Fed have done to help & why?
Why was the tariff a bad idea?
Describe a run on a bank?
Lowered interest rates to encourage spending
It lowered the market for US goods
People get all of their money out and the bank closes. If you are late your money is gone

13. IV. Turn around
Franklin D. Roosevelt (D) of New York is elected in 1932
FDR immediately starts Relief, Recovery, & Reform measures known as the New Deal
New Deal helped alleviate the suffering but it DID NOT end the Depression
Massive spending on WWII ended it*

14. IV. Turn around In Great Britain a multi-party gov’t took over
Slowly improved the economy and lowered unemployment
Production was up by 1937
In France, they went through several gov’ts
Coalition gov’t lowered unemployment, but companies raised prices to cover cost of wages
France continued to struggle*

15. CFU What was the New Deal? What ended the Depression?
Who took over in England?
What happened when France lowered unemployment?
FDR’s plan to end the Depression
WWII spending
A multi-party gov’t
French companies raised prices negating the help

16. Great Depression Political Cartoons
Analyze the Cartoons
Answer the questions on a separate piece of paper. DO NOT WRITE ON THE DOCUMENT!
Notes and Chapter 21 in the US textbook will help you.
The first cartoon says : “ Orders 1928” & “Here was on from Jones and Co., says ‘Please ship fifty thousand of your new model’”

17. Depression Photo Gallery
Look at each picture and answer the following about each set of pictures…
Give details about what is happening in the picture
What do these pictures teach you about the Great Depression?
What is your emotional reaction to the photos?
What could be done to help the people in the photos?

18. Make-up Work Work on any missing assignments you have.
I need them today in order for them to go onto 4th Q Interim