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Depression Causes. A B C E/A D US Economy 1914-1950 WWI20sDepressionNew DealWWII There was a huge increase in war goods needed to fight WWI. The drop.

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Presentation on theme: "Depression Causes. A B C E/A D US Economy 1914-1950 WWI20sDepressionNew DealWWII There was a huge increase in war goods needed to fight WWI. The drop."— Presentation transcript:

1 Depression Causes

2 A B C E/A D

3 US Economy 1914-1950 WWI20sDepressionNew DealWWII There was a huge increase in war goods needed to fight WWI. The drop after WWI was slightly recovered during the 20s because of ads, the car and credit. During the Depression, the economy suffered a decline and a slight recovery during the New Deal. However, the real recovery was WWII. Thus the New Deal FAILED !

4 Directions: Think about the possible outcomes of each scenario. Would the scenario cause an economic increase or decrease and why?

5 WWI is Over

6 Inflation causes prices to go up so the government tightens up credit

7 Removal of money from the economy

8 European nations rebound after WWII and can now produce needs and wants on their own

9 Credit

10 Ads

11 Surplus Up and Wages Down

12 Banks Closing Down and Not Distributing Deposited Money

13 Americans Start to Save Money In their Homes

14 Americans Lose their Jobs

15 Stock Market Crash Causes American Companies to Lose Capital

16 The Ferris Wheel: to understand this section you must remember WWI and the loans to European Nations. During the war, American banks lent money to the Allies. The Allies then used that money to buy American war related war goods. That is the reason for the Allied Powers demanding German reparation payments. US loans money to the Allied Powers Germany pays reparations Allies receive money from Germany to pay back Americans

17 How did Germany pay during the 20s?

18 US loans money to the Allied Powers Germany pays reparations Allies receive money from Germany to pay back Americans US lends money to Germany

19 Stocks During the Depression You all have 100.00 to either: 1.Buy stocks 2.Save your money 3.Put it in the bank

20 Spare a Dime Song They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime? Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum! Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime? Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum! Say, don't you remember, they called me Al; it was Al all the time. Say, don't you remember, I'm your pal? Buddy, can you spare a dime?


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