Causes of the Great Depression: Summary and Learning Targets
Students are tasked with summarizing specific causes of the Great Depression on index cards, with topics including overproduction in agriculture and industry, unequal distribution of wealth, and high tariffs. Learning targets include summarizing relevant facts about the causes of the Great Depression.
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4/24 Day 6 Grab Causes of the Great Depression pg. 3. Per 4&6 Grab Stock Market pg. 5 Speakeasies Each person in the group will create a 1 sentence summary (put on a index card) of a specific cause of the Great Depression 1-5. Groups will be combined by number and one sentence will be reported out. Learning Target: I can summarize & articulate relevant facts about the causes of the Great Depression. (put on bottom of the back) Homework: Vocab Quiz Tues., Roaring 20 s packet-Tues. Causes NOTES pg 5. due Weds. Per 4&6 Complete Stock Market.
4/25 Day 1- Vocab Quiz pg.4 -ARE YOU READY? Look at Boom or Bust reading. Learning Target: I can closely read for information about the events that lead to the Great Depression. Look over your terms Take the quiz Read and highlight the article. Homework: Roaring 20 s packet, Causes NOTES pg 5. due Weds. Per 4&6 Complete Dust Bowl packet.
4/26 Day 2- Put Great Depression Notes in box. Grab a book pg. 6 Depression Devastates- (Divide and Conquer) Per 4&6- Turn in Stock Market pg. 5 Learning Target: I can closely read secondary text for information. Homework:
Over Unequal Distribution of Wealth Production Industry Agriculture Causes of the Great Depression Monetary Policy Stock Market Crash and Financial Panic High Tariffs & War Debts
Causes of the Great Depression Overproduction in Agriculture Prices of farm products fell about 40% by 1921 and remained low through the 1920s Farmers were producing more than American consumers were consuming Farmers had to rent the land or move
Causes of the Great Depression Overproduction in Industry Factories were producing products, however wages for workers were not rising enough for them to buy the goods The surplus products could not be sold overseas due to high tariffs and lack of money in Europe
Causes of the Great Depression Uneven Distribution of Income Industrial productions increased about 50% but the wages of the industrial workers rose far more slowly As a result, these workers couldn t buy goods as fast as industry produced them
99% of the population received a 9% increase in their income, while the top 1% saw their income rise by 75%. 1,230,000 Americans 80 75 70 60 50 TOP 1% 40 BOTTOM 99% 30 121,770,000 Americans 20 10 0 1929
Causes of the Great Depression High Tariffs and War Debts European nations owed $10 billion ($115 billion in current dollars) to the U.S. in reparations Their economies were devastated and had no way of paying the money back U.S. insisted on repayment. This forced the allies to demand Germany pay reparations imposed by Treaty of Versailles Europe could no longer purchase goods from the U.S. 1922, U.S. passed the Hawley-Smoot Act Instituted high tariffs on industrial products Other nations retaliated and world trade declined
Causes of the Great Depression Monetary Policy 1) Policy of regulating interest rates. 2) Want more money in circulation? Federal Reserve will lower interest rates. 3) This meant that people could borrow money at a low rate. So everyone did causing prices to rise.
Step to a The Crash Read but don t write 1. 2. By August 1929, 6 billion loaned out Some investors realize market is saturated Investors begin to sell stock, causing prices to drop As prices drop, brokers call in their loans Investors do not have the cash to payoff the loans Brokers enforce sales of stock to payoff the loans Prices drop more, causing panic sales of stock Prices drop dramatically and money evaporates into thin air 3. 4. 5. 6. 7. 8.
Causes of the Stock Market Crash Speculation Investors would buy stock that they thought would quickly rise in value, once the price went as high as the investor thought it would go they sold.
Causes of the Stock Market Crash Buying on Margin Investors only had to put 5% of the stock value down; the stockbroker loaned the money they didn t have
Causes of the Stock Market Crash Banks Banks loaned stock brokers money for the margin loans, they used the savings people had deposited in the bank for these loans. The savings was not insured.
