1. Causes of the Great Depression
Life’s a Beach
Causes of the Great Depression

2. What were the major causes of the Great Depression in America?
Down to Business
Essential Question
What were the major causes of the Great Depression in America?

3. Why do I care, Miss McCormack
The Great Depression was a defining moment in America’s history in which the country was forced to deal with the consequences of its actions. In many was the turn of the century had been the “trying teen years” of our country and it was now a grown up learning from its mistakes. Nonetheless, it forced America to “pull itself up by its bootstraps and move forward.

4. Quick Write
When you hear “the economy is bad” what does that mean to you? How does this look in our day to day lives?

5. Industries in Trouble
railroads lost business to new forms of transportation
trucks, buses, private automobiles
coal mining & lumbering declined (less need)
new forms of energy
hydroelectric power
fuel oil
natural gas
new home construction fell

6. Farmers in Trouble during WWI price & demand were high
Grew too much hoping to make money
began to default on their loans
rural banks fail
banks foreclosed and seized property as payment for debt

7. Consumers in Trouble Americans were buying less rising prices
Wages did not increase as cost of living became more expensive
unbalanced distribution of income and wealth
overbuying on credit

8. Uneven Distribution of Income
rich got richer & poor got poorer
most American families (70%+) earned under $2,500 a year
min. amount for a decent standard of living

9. President Herbert Hoover
Republican
ran on a ticket of American wealth and prosperity
won 1928

10. The Stock Market… (1)
Stock market = ability for anyone to invest in and then own a “share” (a piece) of a company.
represents the health of the market

11. The Stock Market… (2)
buying on margin: paying a small percentage of a stock’s price up front and expecting to make a profit to pay the rest back later
speculation: bought stocks and bonds on the chance of a quick profit while ignoring the risks

12. CRASHES!!! Black Tuesday October 29, 1929
16.4 million stock market shares sold in 1 day
millions of those shares had no buyers
investors lost about $30 billion

14. Bank and Business Failure
tried to withdraw their savings from the banks
banks had invested the money and lost
no government protection for bank accounts

15. Financial Ruin
stock market crash signaled the beginning of the Great Depression
unemployment grew
3% in 1929 to 25% in 1933

16. Results less demand for consumer goods = fewer people shopping
fewer shoppers= business in financial trouble
business trouble= firing workers
unemployment= even less shopping

17. Example
Depression began with people in America living beyond their means and buying on credit
Everyone began to invest in the stock market to make quick money to pay debts and get rich
But soon the stock market crashed and people lost their life savings.
The streets were filled with panicked people who ran to the banks for the last of their money.

18. Assignment: Acrostic Poem
Using your Randomly selected word you will create a poem.
minimum of 7 words per line
must incorporate the causes of the Great Depression
story of the causes; not just the one you were assigned
must include at least 1 picture
must be colorful

19. Assignment: Acrostic Poem Potential Words:
BANK FAILURE
BLACK TUESDAY
BUYING ON MARGIN
DEPRESSION
HOOVERVILLE
INSTALLMENT PLAN
ROOSEVELT
SHANTYTOWN
SPECULATION
STOCK MARKET

20. 20 MINUTES UNTIL GALLERY WALK …
ALL posters must be
finished at this point.

21. Gallery Walk Read the poem as a group Discuss the poem together
Sharing with stickies =)
Read the poem as a group
Discuss the poem together
Each group will complete one of the following sentences on a sticky note:
This poem is effective in explaining The Great Depression because …
This poem does not effectively explain the causes of the Great Depression because …
This poem has several strengths, including…
This poem should address …
This poem would be even better if …
This poem helps us to understand the Great Depression because …

22. 1. As a group READ & DISCUSS the feedback given to you on the sticky notes 2. Use the RUBRIC (below) to give yourself a score as a group. (write it on the WHITE rough draft/directions paper). 3. Staple the sticky notes to the back & turn it in to the basket
RUBRIC: 40 pts possible
10 pts: 7 words per line (as close as possible)
5 pts: picture
Does it relate to the topic?
5 pts: colorful
20 pts: content
Did you discuss multiple causes?
Did you explain how the Depression began?