1 / 9

Good Morning!!

Good Morning!!. NVC Causes of the Great Depression continued Essential Question: What caused the Great Depression? Homework : Great Depression Recipe. From a Crash to a Depression: People Lose Everything.

hammer
Download Presentation

Good Morning!!

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Good Morning!! • NVC • Causes of the Great Depression continued Essential Question: What caused the Great Depression? Homework: Great Depression Recipe

  2. From a Crash to a Depression: People Lose Everything • Buying on the Margin: borrow money to buy stock using your stuff as collateral/security • investors collect borrowed money by TAKING YOUR STUFF! • Banks Collapse • Banks loaned out most of the money that was lost • Bank Runs: people panic and withdraw their money • banks RUN OUT OF CASH

  3. Hoover’s Reaction… • Laissez-Faire: Let it be! Business must be left alone to solve the crisis itself • “Any lack of confidence in the economic future or the basic strength of business in the United States is foolish. All the evidences indicate that the worst effects of the crash upon unemployment will have passed during the next sixty days.”—PresidentHerbert Hoover

  4. Hidden Problems with the Economy • Unequal distribution of wealth • Small amount of super rich and lots of poor! • People cannot afford to buy what the economy is making • Overproduction: more products are being made than people can buy • Underconsumption: people not buying as much as the economy is making

  5. The Government Screws It Up More • Federal Reserve (“Fed”) national bank that loans money to other banks • Fed worried banks won’t repay loans • Raises interest rate on bank loans = now harder to borrow money • No borrowed money = businesses go out of business!

  6. The Government Screws It Up More • Hawley-Smoot Tariff Act (1930) • Tariff: tax/fee on imported goods to encourage Americans to buy American products • Europe raises tariffs in response • NO INTERNATIONAL TRADE

  7. Recipe for a Depression: You will create a “recipe” that contributed to the Great Depression. • Ex… • PREP TIME: ___ Years • COOK TIME: ___ Months/Years • SERVES/MAKES: _____ INGREDIENTS: DIRECTIONS • In a large country, mix together ___________. • Combine the ___________ • Preheat stock market by buying on margin to an overinflated value _______ • Bake for ____________. • Enjoy!

  8. PREP TIME: 30 Min COOK TIME: 8 Min SERVES/MAKES: 3 dozen INGREDIENTS 1/2 cup butter 1 cup vegetable oil 2 cup white sugar 2 eggs Dash of vanilla extract 4 cups all-purpose flour 1 teaspoon baking soda 1 teaspoon cream of tartar Sprinkle of salt DIRECTIONS In a large bowl, mix together the butter, oil, and white sugar. Beat in the eggs, one at a time then stir in the vanilla. Combine the flour, baking soda, cream of tartar and salt; stir into the sugar mixture until just blended. Cover and chill dough for at least 3 hours or overnight. Preheat oven to 350 degrees F. Grease cookie sheets. Roll the chilled dough into walnut sized balls. Place them 2 inches apart onto the cookie sheets. Bake for 8 to 10 minutes in the preheated oven. Enjoy! Sugar Cookies

  9. Ingredients to Include • A Speculative Boom in the stock market, p.384 • A Banking Crisis that wiped out people’s savings, p.385 • Overproduction of goods, p.386 • A widening gap between rich and poor, p.386-387 • Underconsumption, p.387 • Tight money supply, p.388 • Tariffs, p.389

More Related