Bell Quiz Why did more Americans start living on Credit?

Slides:



Advertisements
Similar presentations
The Great Depression Chapter 22 Sec 1&2 Many American industries werent making large profits. –Steel, railroads, cars, construction, coal mining, lumber.
Advertisements

The Great Depression.
1920s BOOM 1930s BUST Main Idea: The prosperity of the 1920s seemed
Causes of the Stock Market Crash
Chapter 14 Section 1 Notes  The Great Depression  Key industries (Railroads etc…) Barely made profits  Farmers making more than they could sell  Railroads.
Causes of the Great Depression
The Great Depression Depression
Bellringer. Causes of the Great Depression Farmers’ crisis/ Over production (surplus of goods, falling prices) Credit purchasing Tariffs (stopped foreign.
The Stock Market Crash of 1929 and the beginning of the Great Depression.
The Great Depression How was a decade of prosperity followed by a decade of hopelessness?
INDUSTRY KEY INDUSTRIES BARELY MADE A PROFIT SOME INDUSTRIES LOST BUSINESS TO FOREIGN COMPETITION & NEW AMERICAN TECHNOLOGIES SOME INDUSTRIES SUFFERED.
Ch. 14 Sec. 1 The Nation’s Sick Economy
The Causes of the Great Depression
The Great Depression. What was the Great Depression? Time of economic crisis characterized by high unemployment during the 1930s, the beginning is marked.
“Black Tuesday” and the Great Depression
1920) World economy = a delicately balanced house of cards. Key card that held up the rest was American economic prosperity. HoJun.
Canada and the Depression
DESCRIBE SOCIAL AND ECONOMIC CONDITIONS FROM THE 1920S THROUGH THE GREAT DEPRESSION REGARDING FACTORS LEADING TO A DEEPENING CRISIS, INCLUDING THE COLLAPSE.
Chapter 15 The Great Depression
The Causes of the Great Depression
Causes of the Great Depression
The Great Depression. “Brother Can You Spare A Dime” –By Bing Crosby –Performed By Al Jolsen How did the working class Americans feel about the “hard.
Great Depression Economic disaster that hit the United States following the stock market crash of 1929 It involved widespread business failure.
LONG TERM CAUSES OF THE GREAT DEPRESSION
14 sec.1 Nation’s Sick Economy. Economic Troubles Housing boom faded Railroads lost business Mining & lumbering suffered.
CAUSES OF THE GREAT DEPRESSION. THE GREAT DEPRESSION KWL ON YOUR PINK POST IT NOTE WRITE SOMETHING THAT YOU KNOW ABOUT THE GREAT DEPRESSION ON YOUR YELLOW.
CAUSES OF THE GREAT DEPRESSION. AMERICA MADE LOTS OF MONEY DURING THE 1920S Higher productivity and consumer demand (people wanting to buy things) led.
Causes of The Great Depression. Hoover Elected President Election of 1928 takes place during prosperity –Hoover runs campaign on Republicans prosperity.
BELL QUIZ: USE PAGES )What nickname was given to the day the stock market collapsed on October 29, 1929? 2)How many U.S. banks collapsed by 1933?
THE START OF THE GREAT DEPRESSION. Definition  Depression – A period marked by less business activity, much unemployment, falling prices and wages, etc.
The Nation’s Sick Economy. Industries in Trouble Key industries barely making a profit Mining and lumbering faced diminished demands Key industries barely.
1 Objective: To examine the causes of the Great Depression.
The Great Depression. Causes of the Great Depression Overspeculation on stocks using borrowed money that could not be repaid when the stock market crashed.
Causes of the Great Depression
THE GREAT DEPRESSION.
CHAPTER 14 SECTION 1 THE NATIONS SICK ECONOMY MAIN IDEA: As the prosperity of the 1920s ended, severe economic problems gripped the nation.
GREAT DEPRESSION. Great Depression The Great Depression was a time period between 1929 and 1940 in which there was high unemployment and little economic.
Americans prosperous called “Roaring 20’s” Depression started in 1929 with the crash of the Stock Market.
Causes of the Great Depression Mr. Blais America in the World (TVP)
Objective: To examine the causes of the Great Depression Do Now: How did an increase in wages help cause an economic boom?
Period 1, 5, & 6  We will examine the causes of the Great Depression  Go over video questions  Chapter 14.1 Notes  Quiz  Chapter 14.2 Reading.
Economic Troubles on the Horizon Things Aren’t as Good as They Appear to Be!
Troubles of the 30s.  People who bought stocks on margin (on credit with 10% down) were now being asked to pay brokers the money they still owed.  On.
The Nation’s Sick Economy What caused the economy to go bad at the end of the 1920s?
The Great Depression. Overproduction good times had encouraged producers to increase production beyond what markets demandedgood times had encouraged.
The Nation’s Sick Economy The Great Depression (The Hoover Years):
The Causes of the Great Depression in Canada:
Y Your task is to analyze the clues about what caused the Great Depression. Follow your teacher’s instructions about completing the activity.
Causes of the Great Depression CHC 2DI S. Todd. 1. Over-production and over- expansion – Industry in the 20s expanded too quickly – Large amounts of money.
Unit #3: 1920’s, GD, New Deal Causes of the Great Depression.
The Nation’s Sick Economy Chapter 22 Section 1 Notes.
1) What nickname was given to the day the stock market collapsed on October 29, 1929? 2) How many U.S. banks collapsed by 1933? 3) Define “rugged individualism”(p.
The Nation’s Sick Economy What caused the economy to go bad at the end of the 1920s?
Causes of the Great Depression. The rich get richer and the poor get poorer in the 20s F /5 of the nation’s wealth was owned by 2% of the pop.=
The Great Depression. What was the Great Depression? Time of economic crisis characterized by high unemployment during the 1930s, the beginning is marked.
Causes and Effects of the Great Depression. Cause #1 Stock Market Speculation Effect: Prices of stock rose higher than they were really worth.
HW: Quiz on 1920s era (notes and 20.1 Vocab) and the Stock Market Crash.
Causes of the Great Depression. Possible Causes of the Great Depression Stock Market Crash Over production Unequal distribution of wealth Consumerist.
Unit #4: Great Depression & New Deal Causes of the Great Depression.
22-1: The Nation’s Sick Economy. Industry Key industries barely made a profit Some industries lost business to foreign competition and new American technologies.
The Great Depression: Causes and Effects 6.3: Explain the causes and consequences of the Great Depression, including the disparities in income and wealth.
Aim #63: What were the causes of the Great Depression? Do now! On a separate sheet of paper, explain what you believe was the most significant cause of.
THE GREAT DEPRESSION The Nation’s Sick Economy. The future’s so Bright, I gotta wear shades? 1920’s were a prosperous decade to many, but not all. Trouble.
Roots of the Great Depression
It’s the End of the World As We Know It…
How did the Great Depression occur?
The Nation’s Sick Economy
Warm-up Write an argument explaining why the stock market crashed in Use insights you gained from our simulation.
Or why the economic depression of the 1930s was so severe…
GREAT DEPRESSION of the Causes PowerPoint & Notes Set
Presentation transcript:

Bell Quiz Why did more Americans start living on Credit? Define buying on Margin. What would October 29, 1929 be known as? In 1933 how many banks closed? What happened to world trade? How did this happen?

Answers People wanted more things, Living beyond their means. Paying a small % of a stock’s price as a down payment and barrowing the rest. Black Tuesday 11,000 IT STOPPED. Countries raised Tariffs to encourage buying home made products.

The Crash! The collapse of the stock market did NOT cause the Great Depression!! Instead, the depression caused the stock market to bottom out.

Law of supply and demand: A) Prices on goods increase when demand is high and supply of goods is low. B) Prices on goods decrease when demand is low and supply of goods is abundant.

So what did cause the Great Depression? Well its Complicated Drop in industry. Overproduction of crops and inability to pay farm loans. The availability of easy credit. Consumers buying less goods due to high prices and low wages. Unequal distribution of income.

Industries in Trouble Many industries overproduced goods and had a large supply to get rid of=lost $. Mining and lumbering were no longer in demand. Railroads were losing customer and Businesses to new forms of transportation. The housing industry slowed down since less people were building houses. When housing slows, so do jobs in related industries, like cement, lumbering, furniture, landscaping, roofing, etc. Sound familiar?

Farmers in Trouble Demand fell after WWI, and crop prices declined by 40% or more. Response farmers boosted their product however Prices fell. This caused farmers unable to pay off their loans.

Buying and Living on Credit (debt) This was a new idea. Credit buy now, pay later. Means you will buy an item now (house, car, computer, School loans…..) and pay back over time with interest.

Consumer have less money If you have less money what are you most likely to do? People were buying less because they had less money. In response to the lack of money businesses laid off workers because they needed to save money.

Uneven Wealth Workers got poorer and poorer. 3 out of every 4 families were living below the poverty line. Since they had no money they could not buy any Products So who was going to boost the Markets.

Buying with Credit You will not be able to buy everything up front. So buying some things on credit is ok. House Car Others not so much..think about it.

HOUSE Price: 250,000 X 6% annual interest =$ 15000 per year in interest. Length of loan=30 years (360 months) $15000 X 30 years=$450000 in total interest. Total Price of House: $250000+$450000=$700000 How much is your monthly payment?

Your Turn Find House (use your technology) $400,000 6% annual Interest Length of loan=30 years (360 months) Find your total. what is your monthly payment?

School Loan Find your College that you want to go to. Add tuition, Books Room and Board, other Expenses. Average $10,000- $12,000 a Semester. (x by 8 Semesters) 5% annual Interest 35 year loan What's your Total? What's your Monthly payment?