5/4 I can explain, why the Great Depression happened and whether what was done, to fix it, worked?

Take out Pre test #7 and grade it. Grab a slip of paper out of the bin. Group pair and share,

what was so Roaring about the 20’s?

Pre #7 1.3 2.4 3.4 4.4 5.2 6.2 7.3 8.4 9.2 10.2 11.2 12. 1 13.4 14.4 15.3 16.2

Read the top paragraph of “What done It”

Group pair share info. Everyone Stand and look at your

slip.Sit down when you loose your

job.

Henry Ford see a drop in car sales by 30%, what would he do?

Think pair and share, “What can U.S. government do to get everyone back to work?”

(start your notes here)The Main causes of the Great Depression

I can explain, why the Great Depression happened ……

Write down your explanation on top of note sheet be sure to include…. OVERPRODUCTION UNDER CONSUMPTION

http://www.shorpy.com/node/199

What was the final straw?Great Stock Market crash of

1929On Black Tuesday, October

29th after panic selling market fell 89%

Our economy had some serious weaknesses such as…

How did it get so bad?

Worldwide price of agricultural good dropped, WHY?

High unemployment in RR, coal, and textile industries, WHY?

Bank failures because people could not pay back loans, WHY?

Also… ( read all but write underlined)

Unequal distribution of wealth Excessive buying on credit, then

less buying as debt piles up Business consolidations resulting

in just a few large companies in each industry are left vulnerable to failure

Weak banking structure Weak post war international

economy Inadequate government policies

to deal with all of the problems!

I can explain what the government did to try to fix the problems of the Great Depression and if it worked.

Herbert Hoover 1929-1933 Tried to restore confidence• Helped businesses in hopes of a “trickle down” effectCreated some public works

programs to create jobs.

TRICKLE DOWN ECONOMICS

GOVERNMENT LOANS $ TO BUSINESS SO THEY

INVESTMENTPLAN TO EXPAND

CREATENEW

JOBS TO

INCREASE PRODUCTION

MORE WAGESIN

CIRCULATION

DEMAND for Goods

INCREASES

NO MORE DEPRESSION?!

This failed because…Businesses were afraid to

spend money given to them by the gov’t – therefore no new hires or reinvested.

TRICKLE DOWN DIDN”T WORK WE NEED AN INFUSION not a Trickle