Objectives
• Content: Identify a lesson learned from the
Stock Market Simulation.
• Language: Negotiate prices of stock in the
Stock Market Simulation to make the most
money (profit).
Warm Up
• Discuss Stock Market Simulation
– What did you learn?
– What would you do differently/the same?
– Can you see where people get into trouble?
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.
Surprise?
• 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
Causes of the Great Depression
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
2. People over
speculated on
stocks, using
borrowed money
that they could not
repay when stock
prices crashed.
Panic Begins
• 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.
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://viewpure.com/ccNilnpvbJg?st
art=0&end=0
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
deposits
http://viewpure.com/lbwjS9iJ
2Sw?start=0&end=0
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://viewpure.com/GCQfMWAikyU
?start=0&end=0
Letters to Mrs.
Roosevelt
Warm Up
• Brother Can you Spare a Dime?
– http://viewpure.com/eih67rlGNhU?start=0&end=0
•
•
•
•
•
•
•
•
•
•
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 written to Mrs.
Roosevelt to understand the problems faced
by children 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!
New Deal Chart
• Use the textbook to fill in each program
– Chart is on page 732
• The full name is to the left of the abbreviation
• Purpose is to the right of the abbreviation
– SEC is the only one you have to read about on
page 734 in order to answer
Warm Up
List the causes of 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