1. Happy break! Last minute submissions for quarter 3?
The “crash”- 5 minute video
What were the causes of the Great Depression? (part 1)
“cycle of disaster” (back of sheet)
Document activity/ graphic organizer in pairs or alone…. To turn in- 10 points
for full credit, be specific
Finished? Do back (if not done, will have to be done when return….)

2. UNIT 12- The Great Depression and the New Deal

3. April 25 GO OVER: DOCUMENT ACTIVITY (FRIDAY): VIDEO:
What were the causes of the Great Depression? (part 1)
“cycle of disaster” (back of sheet)
VIDEO:
Go over first side
HOOVER…. ELECTION OF 1932

4. BTW Documents are “lumped” together (A/B; C/D; E/F…..)
Full credit- be specific

5. Unequal Distribution of Wealth: Why is this a problem?
1920s- rich got richer ; poor got poorer
70% of nation below $2,500
207

6. Overproduction- Factories and Farms
Farm goods- surplus, prices drop, can’t get out of debt
Manufactured goods- Americans buying less
Orders slow; factories lay off workers

7. Consumer debt
Consumer goods bought on credit throughout 1920s (living beyond means)
growing debt- people cut back on spending
LAST 50
YEARS

8. Stock Market speculation
speculation- trying for quick profit; ignoring risks
Buying on margin- pay a small percentage of a stock’s price & borrow the rest from a bank

9. Stock Market Crash- Onset of Great Depression
“Black Tuesday”- October 29, 1929
$30 Billion in “wealth” disappears

10. consumer income and spending
A cycle of disaster
businsess faliures
unemployment
consumer income and spending
Bank failures
Cycle of disaster
How are these connected?
Banks fail---
Businesses fail-
Unemployment up—
Consumer spending/ income down--

11. New York Stock Exchange, Black Tuesday (October 1929):

12. Bank Failures “Bank runs”- people panic- run to get $$ out of banks
Banks had lost $$ in stock market
11,000 banks close- people lose all their savings

13. Bonus Army…

14. Business failures/ production PLUMMETS
90,000 businesses went bankrupt
“GDP” (national production) cut in half from
13,000,000 unemployed by 1933 (25%)
Those with jobs- pay cuts, fewer hours…
MASSIVE unemployment

15. “Hardship and Suffering”
Cities: 1000s evicted from homes- live in shantytowns (“Hoovervilles”)

16. “Hardship and Suffering”
Cities…- soup kitchens/ breadlines

17. “Hardship and Suffering”
Rural areas: At least they could eat
1000s of farmers lose land through foreclosure

18. “Hardship and Suffering”
Dust Bowl- Drought hits in early destroys overfarmed land
“Okies”- 1000s of farmers
pack up and head to CA

19. Life in Depression
Hunger
Homelessness
“hobos” on freight trains…

20. According to his belief in the “rugged individualism” of Americans described above, why did Hoover believe that the federal government should not directly help the needy during the Depression?

21. “Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body - the producers and consumers themselves.”

22. “It is just as important that business keep out of government as that government keep out of business.”

23. “Every time we find solutions outside of government, we have not only strengthened our character, but we have preserved our sense of real government.”

24. “Prosperity cannot be restored by raids upon the public Treasury.”

25. According to Hoover’s philosophy and quotes…….
According to Hoover’s philosophy and quotes…….
Should the government play an important role in the economy?
How will the economy recover if the government does nothing?
1-10; Why?

27. Election of 1932
"I pledge you, I pledge myself, to a new deal for the American people."
-FDR, accepting the Democratic nomination for the 1932 election