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The Response to the Economic Collapse
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HOT ROC: What are the similarities between the economic decline of 1929 and 2008? 1929 2008 Heavy borrowing Corruption Unrealistic buying stocks on margin and goods on credit Falling real-estate prices Vastly overvalued stocks Bailout by GM’s Durant, Rockefeller, Lamont Emergency spending programs: New Deal Heavy Borrowing Corruption Risky investments by stock broker companies Plummeting real-estate prices Vastly overvalued stocks Bailout by government, Buffett Emergency spending programs: American Reinvestment and Recovery Act
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HOT ROC: What are the differences between the economic decline of 1929 and 2008? 1929 2008 Government’s involvement in the economy: 3% Governments did little to directly intervene Massive bank failures: 40- 50% Unemployment: 25% *Add to glossary Government’s involvement in the economy: 20% Governments all over the world rushed to prevent a total meltdown Few bank failures: 0.6% Unemployment: 9%
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New Vocab: Which approach do you think is best for the economy? Supply Side Economics The theory that economic growth depends on increasing the supply of goods and services through tax cuts; also known as trickle down economics Demand Side Economics The theory that economic growth comes from government spending and regulation of the economy; also known as Keynesian economics
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FDR Launches the New Deal’s First Hundred Days Read over page 398 What 2 programs do you think could most help the US in 1933? What 2 programs do you think could help the least? Why?
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News broadcasts You will be working to develop a news broadcast in a group of 3-4 that will teach the class about the impact of the Depression on a particular group. Homework: Read the assigned section for your news broadcast group. Performances will be on Friday.
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Review http://www.youtube.com/watch?v=Wil1ePlT1xs&feature= related http://www.youtube.com/watch?v=Wil1ePlT1xs&feature= related Homework Study Vocab Do Makeup Work, due December 9 th
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