AIM: To understand the Great Depression and the New Deal
DO YOU UNDERSTAND HOW MONEY REALLY WORKS? 1. You own a Sporting Goods Store. Would you rather sell $400 worth of goods and get cash, or sell $500 worth of goods on a credit card charge? 2. Is it better to buy a car for $25,000 or pay for it by paying back $1,000 a month for the next 25 months?
3. Would you rather go to a city college and graduate in 4 years with no debt, go to an IVY League school and be in $20,000 debt when you graduate?
If you were going to give away a million dollars would you give 1000 people $1, 000 to use for tuition of give Cardinal Hayes the million to give out as tuition aid.
REASONS FOR GREAT DEPRESSION 1. In Roaring Twenties 10 per-cent of population has 90 per-cent of wealth. That’s – an uneven distribution of wealth 2.People buy stocks “on the margin” (paying only a fraction of stock’s value). 3.Installment Plans make it to easy to buy on credit 4.No regulation on Stock Market
5. Harding- Coolidge and Hoover locked into a laissez-faire approach 6. Stock Market Crash, 1929 7. Hawley- Smoot Act 1930 – higher tariffs mess up international trade trade 8. Unemployment rate reaches 25%