The Great Depression
Chapter 11, Section 1
• Lesson 1: The U.S. economy in the late
1920s.
Activity 1: Class Notes
• 1. Economy in the 1920s
•
- production and employment were high
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- more Americans than ever owned homes
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- 80 million Americans per week were going
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to the movies
- stock prices were rising
- experts saw no end to the bull market,
people were being encouraged to buy stock
and make money like everyone else
Activity 1
• How does the stock market work?
• - an owner of stock owns a small piece of a
•
•
•
corporation
- shares of stock are bought and sold at a
certain price
- a buyer hopes that the price of the stock they
buy will rise which means there stock has made
money (Ex $5 per share goes to $20)
- a owner of stock will only make or lose money
after they sell their stock
Activity 2: Stock market simulation
• 1. Decide which stocks you want to buy. You have $5,000 to
spend. Use all your money (You must buy 4 different stocks)
• 2. Divide the amount of money you want to invest by the price of
the stock to see how many shares you can buy.
• example: $1000 divided by Yahoo stock ($100 per share)
• = 10
shares
• 3. Continue to repeat step number 2 until you have spent all of
your money (or as close to all of your money as possible)
• 4. Make a list of all the stocks you bought and the price you bought
them for on the worsheet provided:
• Company: Yahoo
• Date
Price of stock # of shares
• Day 1
$51
42
Value
2142
Gain or Loss
-
Day 1
• You have $5,000 to invest in the stock market. You must buy at least four stocks
from the list below: (If you want to divide your money evenly = $1250)
• Lucent
$50 per share
AT&T
$50 per share
• IBM
$100 per share
Boeing
$30 per share
• Cisco Systems$100 per share
AOL
$100 per share
• Walt Disney
$100 per share
Real Net $50 per share
• Yahoo
$100 per share
Gillette $100 per share
• Merck@ CO
$50 per share
Pepsi
$50 per share
• Dell
$30 per share
K-Mart
$75 per share
• Walmart
$100 per share
Marriot $150 per share
• Pfizer
$100 per share
Mattel
$100 per share
• Coca Cola
$75 per share
EMC
$150 per share
Day 2
• Company: Yahoo
• Date Price of stock # of shares
•
• 2. Day 2 $250
(x 10
Value
Gain or Loss
$2500
+ 150
• Write down your new price and multiply by the number of shares
you bought to get your new value. Indicate the change in value
under the gain or loss column.
Day 2
• Lucent Technologies $150 per share AT&T
$150 per share
• IBM
$200 per share Boeing $130 per share
• Cisco Systems
$200 per share AOL
• Walt Disney
$150 per share Real Net $250 per share
• Yahoo
$250 per share Gillette $200 per share
• Merck@ CO
$100 per share Pepsi
• Dell
$230 per share K-Mart $175 per share
• Walmart
$150 per share Marriot $150 per share
• Pfizer
$150 per share Mattel $150 per share
• Coca Cola
$175 per share EMC
$200 per share
$150 per share
$275 per share
Activity 3
• Signs of Trouble
• 1. Uneven distribution of wealth
- 200 large companies controlled 49 percent
of American Industry
• 2. Rising Debt
• - Buying on credit or installment buying
occurred as people continued to buy more
products
Activity 3
• 3. Speculation in the stock market
increased
• - people were buying stock on margin
• - this means stock brokers would loan
buyers money so they could buy stock
• - buyers thought the risk was low
because prices were going up
• 4. Goods were flooding the market
• - too many goods, not enough buyers
• Lesson 2: The Crash of the Stock Market
Activity 3
• 5. Farmers suffered from low crop prices
• - there was a surplus of food
• 6. Economic policies and lack of
regulation in the banking industry (sound
familiar?)
Lesson 2: The stock market crashes
Activity 1:
• September 3, 1929 the Dow reached a
high of 381 (What is the Dow Jones
Industrial Average?)
• - dominated the news
• - prices soared far above their real
value compared to the company’s
earnings and assets
• Stocks begin to slowly fall
• - some brokers call in their loans
• - others began loan more money
• - “markets are healthy”
Activity 1
• Thursday Oct 24th
•
- large scale investors began to sell huge amounts
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of stock causing prices to fall
- however, the market recovered at the end of the
day
Black Tuesday (Oct 29)
- market started to drop, people panicked and
raced to sell their shares
- phone lines were busy, many people could not get
through
- traders fought with each other on the floor of the
stock market
- there were little to no buyers, which caused the
price to fall drastically
- 16.4 million shares were sold
- overall losses amounted to 30 billion dollars
Day 3
• Lucent Technologies $5 per share
AT&T
• IBM
$1 per share
Boeing $0 per share
• Cisco Systems
$0 per share
AOL
• Walt Disney
$10 per share
Real Net $0 per share
• Yahoo
$0 per share
Gillette $1 per share
• Merck@ CO
$10 per share
Pepsi
• Dell
$2 per share
K-Mart $0 per share
• Walmart
$5 per share
Marriot $5 per share
• Pfizer
$0 per share
Mattel $0 per share
• Coca Cola
$5 per share
EMC
$0 per share
$10 per share
$5 per share
$2 per share
Activity 2 Pg 326
• Explain how the crash of the market
affected individuals, banks, and
businesses
• Area
Effect of the Crash
• A. Individuals
• B. Banks
• C. Businesses
D. Overseas
The Great Depression
Chapter 11, Section 2
• Lesson 3: The Impact on Americans
Chapter 11 Section 3
• Lesson 4: Hoover and the Depression
Activity 1: With your partner, evaluate Hoover’s philosophy and
response to the Great Depression. Explain each idea or response and
then give us your opinion as to whether or not you agree with his ideas
and responses and why.
• Idea or Program
Explanation &
Evaluation
• 1. Rugged Individualism
• 2. associative state
• 3. cooperatives
• 4. Reconstruction Finance Corp
• 5. Smoot-Hawley Tariff Act
• Lesson 5: Graphing Economic Date of the
Great Depression
• Answer questions 1-16 in your notebook
using the graphs.
Activity 2
Take Cornell Notes under activity 2 as you
read Ch. 12-1.
Ch 11 & 12
• Lesson 6: What Should Be Done About
The Great Depression?
• Activity 1: Read each economic briefing
and take a few bullet notes in your
notebook. (A-C)
• Then, decide which response your group
feels is best and explain your answer.
Label each Economic Briefing in your
notebook (A-D)
• Lesson 7: New Deal Programs Overview
• Activity 1: Complete the chart in your
notebook as you learn about the programs
of the New Deal
Lesson 8: New Deal Programs Research
A. Background and Overview of your program
1.
2.
Early Years
Areas impacted
B. Impact on Society during the Great Depression
1. Type/Number of Jobs created
2. Projects or work accomplished
C. C. Legacy of the Program
1. Impact on Society today
2. Opinions/Evaluation of Program
Lesson 8: New Deal Research
•
With your partner, use your research to do each of the
following:
A. Create an advertisement or piece of propaganda that
the U.S. government would have put out about the
your program
- Include many specifics which displays how this program is
impacting the country
B. B. A political cartoon that conveys the perspective of
someone who benefitted from the program, someone
who was a critic of the program, or what life would be
like today if this program had never existed.
Lesson 8: New Deal Research
Part C: On the back of your poster or on a
separate sheet of paper, list the 5 facts
that we should understand based on your
advertisement and your political cartoon