Warm Up

• If you had millions of dollars, would you invest in the stock market? Why or why not?

• If you had just enough to pay your bills and $1000 in savings, would you invest in the stock market? Why or why not?

Objectives

• Content: Name the causes and effects of the Great Depression.

• Language: Predict the main reason the stock market crashed.

The Great Depression

The Great Depression The Great Depression

was the time period from 1929 to 1941 in which the U.S. economy was in severe decline and millions of Americans were unemployed.

• There were signs leading to the depression. In the 1920s, some industries struggled including agriculture, railroads, textile mills, and mines.

http://youtu.be/GCQfMWAikyU

• But, the optimism of the 1920’s concealed problems in the American economy

Surprise?

1. Too much:– Credit• Everyone wanted to own the new

technology of the time even if they couldn’t afford it right away.• They used credit to buy items they could

not pay for in cash.– Production• Businesses kept producing at the same

rate, not realizing that less people needed new inventions as time progressed.

Causes of the Great Depression

Causes of the Great Depression

2. People over speculated on stocks, using borrowed money that they could not repay when stock prices crashed.

• On October 23rd, 1929, prices in the stock market dropped sharply.

• The next day, people tried to sell thousands of stocks before the values dropped even more.

Panic Begins

Stock Market Crash of 1929• On October 28th and

29th (Black Monday and Black Tuesday), the prices dropped even more

• The plunge in stock prices was the first event of the Great Depression.

http://youtu.be/ccNilnpvbJg

Causes Continued

3. High tariffs strangled international trade

Causes Continued

4. The Federal Reserve failed to prevent the collapse of the banking industry.• Didn’t regulate banks

or protect depositshttp://youtu.be/lbwjS9iJ2Sw

Effects of the Great Depression

• A large number of banks and businesses failed

• One-fourth of workers were without jobs

Effects Continued

• Large numbers of people were hungry and homeless

• Farmers’ incomes fell to low levels

http://youtu.be/GCQfMWAikyU

Letters to Mrs. Roosevelt

Warm Up

• Brother Can you Spare a Dime?– http://youtu.be/eih67rlGNhU

• Sirloin Steak (per pound)• Chicken (per pound)• Bread (1 loaf)• Potatoes (per pound)• Bananas (per pound)• Milk ( a quart)• Cheese (per pound)• Canned Tomatoes• Oranges (I dozen)• Cornflakes (small box)

.29 (cents)

.22

.05

.02

.07

.10

.29

.09

.27

.08

Objectives

• Content: Analyze letters to Mrs. Roosevelt to understand the problems faced by people in the Great Depression.

• Language: Record the New Deal Programs and their purpose.

Letters to Mrs. Roosevelt

• Choose one letter and answer the questions in the chart.

• Go back and select a different colored letter (please don’t use both pink AND blue - they are about similar topics). Repeat if time allows.

• Once you have completed your chart, answer the questions on the back of the paper.

The New Deal

Roosevelt is Elected

• In the 1932 Presidential election, President Hoover ran against Governor Franklin D. Roosevelt (FDR)

• FDR easily won with the promise of a new deal that would pull the country out of the Depression

“The only thing we have to fear, is fear itself” – FDR’s inaugural address

The New Deal• Was a 5 part program, designed by Franklin

D. Roosevelt to end the Depression.

The New Deal

• FDR sent Congress many new bills to try to end the Depression in a famous session called the Hundred Days

Hundred Days• The bills passed had 3

major goals known as the 3 Rs:– Relief for the hungry

and jobless– Recovery for agriculture

and industry– Reforms to change the

way the economy worked

Major Features of the New Deal• Social Security• Federal Work Programs• Environmental

improvement programs• Farm assistance

programs• Increased rights for

labor

End of the Depression• Though the New Deal programs had

many successes, it was ultimately WWII that ended the Great Depression!

Objectives

• Content: Categorize the impact of the major New Deal Programs (providing jobs, aid, or reform).

• Language: Explain why the New Deal helped.

#1)SSA

Social Security Act

Set up as a system of pensions for the elderly, unemployed and disabled

#2)FDIC

Federal Deposit Insurance Corporation

All Savings accounts in approved banks were insured and protected by the government

**Remember the Federal Reserve FAILED to protect the banks…The FDIC was created So it would never happen again**

#3)WPA

Works Progress Administration

Employed men and women as artists, writers and musicians and also people to build hospitals, schools, parks, and airports

#4)SEC

Securities and Exchange Commission

Laws regulating the sale of stocks and bonds in the Stock Market

The SEC prevents corporations from cheating and lying about their stock values and gains and losses