Flow Chart on the Causes of the Great Depression 1929-1939

1. Flow Chart on the Causes of the Great Depression 1929-1939 The Great Depression hit the world very quickly. Events spiraled out of control across the globe in only a few months. We’re going to look at some of the causes of the Great Depression. As we go through the 6 Causes of the Great Depression, create a Flow Chart to show the Cause and Effect relationship of these events. There should be 7 parts to your flow chart, the 7th being the GD.

2. Sample Flow Charts

3. Sample Flow Charts

4. Sample Flow Charts

5. Sample Flow Charts

6. Flow Chart on the Causes of the Great Depression 1929-1939 We are going to do something different this time… • Mrs. B will read what is on the slide while you only use your listening skills. • But… • You will also listen while closing your eyes. • READY?! • Turn around and face the back of the room

7. Causes of the Great Depression: 1. Speculation • The horror of WWI caused many people to feel they should live life as richly as possible while they could. • Even so, 60% of Americans lived under the poverty level ($2000/year) • People made up the difference by borrowing money. They bought stocks on the stock market, and when they went up, sold them and used the profits to buy more stock. • Businesses saw all this imaginary money in the market and began to produce large amounts of goods, hoping people would buy them with credit from their stocks.

8. Causes of the Great Depression: 2. Stock Market Crash • Eventually people realized that there wasn’t any actual physical wealth (gold, oil, diamonds, land, etc) behind the stock prices. They began to sell their stocks while prices were good. • This caused a panic in 1929. Banks who had given loans to people to buy stocks demanded their money back. People sold more stocks to pay off as much of their loans as they could. For the next 4 days, the Dow lost over 10% of its value every day. • Total losses for the four days: $30 billion, 10 times federal budget and more than the U.S. had spent in World War I ($32B estimated). The crash wiped out 40 percent of the paper value of common stock. • Thousands of people were left holding worthless stocks and millions in loans to banks.

9. Causes of the Great Depression: 3. Bank Failures After the stock market crash, bank were left with massive loans on their books that people would never be able to repay. Without any money left to do everyday business, banks stopped lending, laid off employees and in many cases went bankrupt. There was no FDIC Insurance at this time, so when a bank closed, people lost all the money they had in the bank. In 1929, there were 25,568 banks in the United States; by 1933, there were only 14,771. Personal and corporate savings dropped from $15.3 billion in 1929 to $2.3 billion in 1933.

10. Friday 4/18/14 • Please get out the following: • Ch. 15.1 CN for prep Check • GD notes from yesterday • Blank sheet of binder paper • 2 blank KTMs • Unit 6 Content Rubric for reference

11. The grandfather I spoke of 

12. Causes of the Great Depression: 4. World War I Debt • At the end of WWI, Europe was in a terrible state. The Allies and the Central powers were bankrupt. Germany was burdened with massive war reparations. Britain and France needed to rebuild their infrastructure (agriculture, factories, transportation lines, etc) and populations. • The US was happy to lend money to these countries, first to finish WWI, and then to rebuild. They did this through loans. • However, once US banks began failing ... the banks not only stopped making loans, they wanted their money back. This put pressure on European economies, which had not fully recovered from WWI, contributing to the global economic downturn.

13. Causes of the Great Depression: 5. Reduction in Purchasing Power • With the stock market crash and the fears of further economic woes, individuals from all classes stopped purchasing items. • But companies had a huge stockpile of items to sell already made, but not paid for. So companies stopped producing goods until they could sell what they had. • With the fall in production, companies didn’t need as many workers and had to lay people off. • As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. • The unemployment rate rose above 25% which meant, of course, even less spending to help relieve the economic situation.

14. Causes of the Great Depression: 6. Protectionism • As businesses began failing, the government created the Smoot-Hawley Tariff in 1930 to help protect American companies from international competition. This charged a high tax for imports, making American goods cheaper to buy. • When Americans stopped purchasing goods from other countries, those companies began to collapse as well, putting more people out of work, so even fewer people could buy anything from anybody. • Other countries retaliated by passing their own Tariff bills, which had the effect of reducing world trade 66% and causing the Great Depression to spread to the whole world

15. 7 = Great Depression1929-1939

16. Crash Course on the Great DepressionVideo Leave this copy on the table please. • Name and explain 4 of the major causes of the GD in the United States. • What was the Smoot-Hawley Tariff? • Why was president Hoover criticized? • How many banks had failed by 1931? • By 1932 how many people were out of work and what %? • What was the New Deal?

17. Monday 4/21/14 • Please get out the following: • Great Depression bubble notes from last week • 2 blank KTMs • Unit 6 Content Rubric for reference • TEXT BOOK *Note: Formative Assessment on GD is Block!*

18. Random Factoids: • Severe inflation usually = a 10% annual increase in prices, but Germany suffered a 1 TRILLION% increase in less than one year. • At the time, $1 U.S. = 4 trillion German marks. • Today, $1 = about.77 Euros • By 1932 more than 32,000 businesses went out of business in the United States and 5,000 banks had closed

19. Set up for TWO key term maps. Use your text book. You also have video notes.

20. This is the second one…

21. Time to share your Below the Surface Images…

22. Tuesday 4/22/14 • Please get out the following: • Cause of the GD notes • 2 KTMs completed yesterday • One new sheet of binder paper • 15.1 CN *Note: Formative Assessment on GD is Block!* PR are next week – C- and below get’s “in danger of failing”

23. Cool Words from yesterday: • Hyper-inflation: 10% annual increase in prices or more • Creeping inflation: healthy, expected increase in prices. Annually = about 4-6% • Deficit spending: the government is spending more than it is making. This adds to the national debt. • Taxes and Spending = the two ways Congress can change the money flow in the U.S. to improve our economic situation.

24. ACRONYMS for the Great Depression You and your team will be making ACRONYMS to remember the key information from the effects of the Great Depression. Follow the procedure to create an ACRONYM on the most important information in your reading.

25. ACRONYM- a word or phrase made up of other words or phrases to help you remember important information. Examples: To remember the order of musical notes on a scale • Every • Good • Boy • Does • Fine To remember the dangers of Trench Warfare- RAMP • Rats • Artillery • Machine Guns • Poison Gas To remember the order of math problems- FOIL • First terms • Outside • Inside • Last

26. Other ACRONYMS • ACRONYMS can be long too: Post WWI Philosophies: Every Silly Eel Can Feel Lost • Einstein claims everything is relative. • Surrealism paints our dreams and nightmares. • Existentialism means we create our own reality. • Cubism breaks everything apart before putting it together again. • Freud says desire rules us not reason. • Lost Generation gives up all hope for the future.

27. Effects of the Great Depression In your small groups give the following jobs to everyone – one per person: • Directions Reader: on the salmon sheet read one section at a time • Depression Information Reader: 3 people, from the white sheet, divide evenly • Identifier: 1-2 people, stop readers when you hear the 5-7 key pieces of information (everyone takes notes on their own paper)

28. Effects of the Great Depression You will write your final group acronym for yourself in your notes Create a colorful acronym to show to the class under the document camera I will choose one person from each group to explain, so everyone needs to be prepared

29. Acronym Notes As the students are in front of the class, copy their acronyms and what they stand for. Get your paper set up like this: • 1. Reduction in Income: • 2. Economic Disaster: • 3. Trade and Manufacturing Shrank: • 4. American Statistics: • 5. Decline in the World Birthrate:

30. Block 4/23-24/14 • Please get out the following: • ½ sheet for Formative Assessment • Acronyms notes • 15.2 CN for prep check

31. Acronym Notes As the students are in front of the class, copy their acronyms and what they stand for. Get your paper set up like this: • 1. Reduction in Income: • 2. Economic Disaster: • 3. Trade and Manufacturing Shrank: • 4. American Statistics: • 5. Decline in the World Birthrate: *The green packet is a class set*

32. Flow Chart on the Causes and Effects of the Great Depression The Great Depression hit the world very quickly. Events spiraled out of control across the globe in only a few months. We’re going to look back at some of the causes of the Great Depression. Follow the directions on the next slide, use your Cornell Notes and in class work to help you and your group.

33. Use these events and/or Ch. 15.2 to arrange into a Cause and Effect Flow Chart with your small group on your desks. At least 8, but more is better! Banks call in their loans from people and businesses Banks close Banks lose LOTS of money Banks stop making loans Businesses close Companies lay people off Factories stop producing goods Foreign businesses close Foreign countries can’t finish rebuilding Foreign countries can’t sell to other countries Foreign people are out of work Foreign people can’t buy products Government raises Tariffs to protect businesses People borrow money to buy stocks People can’t buy products People can’t pay their loans People lose their jobs People lose their savings Stock market crashes

34. Unit 6 Cause and Effect Flow Charts Now, Create a Flow Chart to graphically in your notes that shows these connections. Your flow chart may be one line of connected boxes, or more of a bubble graph, depending on how you want to show your information. You should have 6-8 effects. Do not copy the below flow charts. Businesses go bankrupt Stock Market Crash People lose their money People Can’t buy goods

35. 1. Look at your Homework and in class work. Create and fill out the columns below and use at least the below terms from the word bank. 2. How did the countries of Great Britain, France, Scandinavia and the USA respond to the Great Depression? Word Bank for your answer: Socialism Tariffs Public Works Communism New Deal Great Britain France Scandinavia USA

36. Need scribe for help… France Scandinavia USA Great Britain

37. France • Socialists and communists take over governmentand join forces • Create social and economic reforms • Scandinavia • Use money to support the poor-public works projects • Socialism • Raise taxes • Unemployment insurance • Reduce cost of housing • USA • FDR creates New Deal • Socialist type of plan, but still a capitalist nation • Public works programs to create jobs • FDR initiates 15 acts in Congress in first 100 days Great Britain • Increased taxes • Increased tariffs • Elected a multi-party coalition • Lower interest rates • Regulated currency

38. FINISH 1. Use your ch. 15.2 Cornell Notes, text and class activities to help you fill out only the middle column. 2. The circles should be detailed, not just labeled. 3. Be prepared to share under doc camera in 4 minutes This is completed already.

39. Quick Review :With your small groups, discuss and write your answers in complete sentences. • 1. How did Germany respond to their economic problems differently than the United States. (Give at least three examples) • 2. Why do you think the United States was successful at fixing their economic problems and Germany wasn’t, considering they were both democracies.

40. What do you think?: • Why were the last 6-7 years considered a recession and NOT a depression? • At the peak of the depression unemployment was at 25% • At the peak of the recession unemployment was at about 12% • Depression happen quickly and drastically! • Recessions still include inflation but have lower unemployment rates and happen more slowly.