1. The Great Depression MTA 5.01-5.04

2. The Great Depression It was worldwide It was worldwide Started in October 1929 Started in October 1929 Four causes: Four causes: Stock Market Crash – Buying on margin and too much speculation. Stock Market Crash – Buying on margin and too much speculation. Credit- overuse of credit due to unequal distribution of wealth Credit- overuse of credit due to unequal distribution of wealth Supply/Demand- over production of consumer goods Supply/Demand- over production of consumer goods Tariffs – made trade with Europe almost impossible Tariffs – made trade with Europe almost impossible

3. Define or Identify the following: Define or Identify the following: Shantytown – a “town” made up of shacks where unemployed people lived. Shantytown – a “town” made up of shacks where unemployed people lived. Hooverville- shantytowns named for President Hoover since he was blamed for the economic depression. Hooverville- shantytowns named for President Hoover since he was blamed for the economic depression. Herbert Hoover – president during the Great Depression. Herbert Hoover – president during the Great Depression. Franklin Delano Roosevelt – President from 1932-1945. The New Deal was his program to solve the problems caused by the Great Depression. Franklin Delano Roosevelt – President from 1932-1945. The New Deal was his program to solve the problems caused by the Great Depression. Great Depression- economic downturn that was worldwide and started in the 1929 and didn’t end until the 1940s. Great Depression- economic downturn that was worldwide and started in the 1929 and didn’t end until the 1940s. Laissez Faire Capitalism – an economic system where free markets are not regulated by the government. There is little or no governmental interference in the economy. Laissez Faire Capitalism – an economic system where free markets are not regulated by the government. There is little or no governmental interference in the economy. Credit- borrowing money in order to pay for goods. Also called “buying on time” Credit- borrowing money in order to pay for goods. Also called “buying on time”

4. Define or Identify Bull Market - A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases capital gains. A bullish market trend in the stock market often begins before the general economy shows clear signs of recovery. Bull Market - A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases capital gains. A bullish market trend in the stock market often begins before the general economy shows clear signs of recovery. Bear Market - A bear market is a general decline in the stock market over a period of time. It is accompanied by widespread investor fear and pessimism. Bear Market - A bear market is a general decline in the stock market over a period of time. It is accompanied by widespread investor fear and pessimism. Black Thursday – the Thursday before the stock market crash. Bankers stepped in and stopped decline in the market Black Thursday – the Thursday before the stock market crash. Bankers stepped in and stopped decline in the market Black Tuesday – the day the stock market began to decline. Bankers were unable to step in and the market crashed. Black Tuesday – the day the stock market began to decline. Bankers were unable to step in and the market crashed. Buying on Margin – buying stock on credit. Buying on Margin – buying stock on credit. The New Deal – FDR’s program to solve the problems of caused by the Great Depression and the excesses of the 1920s. The New Deal – FDR’s program to solve the problems of caused by the Great Depression and the excesses of the 1920s. FDIC – Federal Deposit Insurance Corporation – insured bank accounts in order to restore consumer confidence and stabilize the banking system. FDIC – Federal Deposit Insurance Corporation – insured bank accounts in order to restore consumer confidence and stabilize the banking system. The Dust Bowl – the southern Great Plains, where over farming and drought caused the top soil to become like sand. High winds created dust storms. Farmers in the region lost their farms and many became migrant workers in California. The Dust Bowl – the southern Great Plains, where over farming and drought caused the top soil to become like sand. High winds created dust storms. Farmers in the region lost their farms and many became migrant workers in California. Fireside Chats –FDR’s radio broadcasts that were talks to the nation about his efforts to help the economy. Fireside Chats –FDR’s radio broadcasts that were talks to the nation about his efforts to help the economy.

5. Short Answer How did the Great Depression affect family life? How did the Great Depression affect family life? What were the social effects of the Great Depression? What were the social effects of the Great Depression? What were the political effects of the Great Depression? What were the political effects of the Great Depression? How did the banking crisis contribute to the Great Depression? How did the banking crisis contribute to the Great Depression? What were the effects of consumer debt? What were the effects of consumer debt?

6. Activities Activity 1 Activity 1 Read pages 444-447. Read pages 444-447. Create graphic organizers with a partner. Create graphic organizers with a partner. Remember that each student is responsible for making his or her own graphic organizer. Remember that each student is responsible for making his or her own graphic organizer.

7. Activities Activity 2 Activity 2 Make a timeline of the Great Depression. Include at least 10 significant dates and events. Start with October 24, 1929 and end with December 7, 1941. Make certain to include important elections and important legislation. Make a timeline of the Great Depression. Include at least 10 significant dates and events. Start with October 24, 1929 and end with December 7, 1941. Make certain to include important elections and important legislation.

8. The New Deal Franklin Roosevelt’s legislative plan to help alleviate the problems caused by the Great Depression. Franklin Roosevelt’s legislative plan to help alleviate the problems caused by the Great Depression. Most of the New Deal legislation was temporary and used to create jobs for unemployed youths and others who needed relief. Most of the New Deal legislation was temporary and used to create jobs for unemployed youths and others who needed relief. Also included was legislation to help stabilize the banking system and the stock market. Also included was legislation to help stabilize the banking system and the stock market. Important New Deal Programs: Important New Deal Programs: Social Security- provided pensions to the elderly Social Security- provided pensions to the elderly FDIC – Federal Deposit Insurance Corporation – insured bank accounts FDIC – Federal Deposit Insurance Corporation – insured bank accounts TVA – Tennessee Valley Authority – provided electric power to the Tennessee Valley TVA – Tennessee Valley Authority – provided electric power to the Tennessee Valley REA – Rural Electrification Authority – provided electricity to rural areas REA – Rural Electrification Authority – provided electricity to rural areas WPA – Works Progress Administration – public works and employed artists and writers WPA – Works Progress Administration – public works and employed artists and writers AAA – Agriculture Adjustment Act – paid farmers not to plant certain crops to reduce surplus and increase prices AAA – Agriculture Adjustment Act – paid farmers not to plant certain crops to reduce surplus and increase prices CCC Civilian Conservation Corps- employed young men to build roads and camp sites CCC Civilian Conservation Corps- employed young men to build roads and camp sites SEC – Securities and Exchange Commission – regulated the stock market SEC – Securities and Exchange Commission – regulated the stock market