Good Morning!!!!

1. NVC

2. Great Depression vs. Great Recession

3. Ending the Great Depression

Essential Question: What are the similarities and differences between the Great Depression and Great Recession?

Homework: Study for Final

The Real Estate Bubble and the “Subprime Loan Crisis” (2007)

What are the similarities between the economic decline of 1929 and 2008?

1929• Easy credit and heavy

borrowing• Speculative stock bubble• Growing wealth gap

2008• Easy credit and heavy

borrowing• Speculative real estate bubble• Growing wealth gap

What are the differences between the economic decline of 1929 and 2008?

1929• Government’s involvement

in the economy: 3%• Governments did little to

directly intervene• Massive bank failures: 40-

50%• Unemployment: 25%

2008• Government’s involvement

in the economy: 20%• Governments all over the

world rushed to prevent a total meltdown

• Government prevents failures: 0.6%

• Unemployment: 9%

The Response to the Economic Collapse

The Okies

• The “Okie Migration”– 1930s poor farm

migrants from Oklahoma and Midwest searching for farm jobs in California

– Escaping the Dust Bowl– Met with discrimination

and hatred in California

Dust Bowl: a metaphor“When the storm struck it was impossible to see your hand in front of your face even two inches away. We were stunned. Never had we been in such all-enveloping blackness before, such impenetrable gloom. It seemed like an eternity before any trace of daylight whatsoever would return.”—Donald Worster, on the Black Blizzard of 1935

Inspiration in Depression“There was a menacing curtain of boiling black dust that appeared to reach a thousand or more feet into the air. It spread absolute darkness the like of which I have never experienced. But to the south as if from nowhere there came blue sky, golden sunlight and tranquility. It was then that I hugged my child, for I knew the storm would pass.”– Pauline Winkler Gray, on the Black Blizzard of 1935