Lesson 3 What really caused the Great Depression

Lesson 3: What really caused the Great Depression? Read text excerpts and discuss causes of the Great Depression. Put in your notes.

Lesson 3: What really caused the Great Depression? Group activity! -Farmer, teachers, construction workers, and railroad workers. -Need Handout 3. 1 and a calculator. Read the directions and complete the 1928 column. I will give you a card to be able to complete the 1933 column. Have someone read the card out loud to the group. Then, complete the 1933 column and answer the four questions at the bottom.

Lesson 3: What really caused the Great Depression? In 1933, when your income decreased, why did the percentage of your income spent on housing and perhaps other items increase? Raise your hand if your group spent the same dollar amount on food in 1928 as you did in 1933. What did you have to give up in order to feed yourself and/or your family?

Lesson 3: What really caused the Great Depression? How would these spending decisions affect the economy? If you were unemployed, what choices might you have had to make? If you had additional family members come to live with you in 1933, what happened to the income person for your family? What was the nation experiencing?

Lesson 3: What really caused the Great Depression? The country experienced deflation. Prices and services decreased by nearly 30 percent. Businesses earned less revenue, people earned less and some lost their jobs, up to 25 percent were unemployed. Unemployment didn't go under 15 percent during the Great Depression. Borrowers were not able to repay loans. Loan defaults and bankruptcies followed, which produced more bank failures and further declines in output, prices and employment. In 1930 alone, about 26, 000 businesses collapsed. Twothirds of families earned less than $2, 500 a year.

Lesson 3: What really caused the Great Depression? What is a bank run? What is a bank panic? What is a bank failure?

Lesson 3: What really caused the Great Depression? What is a bank run? What is a bank panic? -When many depositors attempt to withdraw all of their funds from their bank at the same time. This then spreads from bank to bank, causing panic and people lose confidence in banks. What is a bank failure? – Banks are unable to meet depositors' demands for their money.

Lesson 3: What really caused the Great Depression? The Bank of the United States fails. Not associated with the U. S. government. Because of its name, people thought it was associated with the government. As a result, people from other countries were frightened by its failure. “A bank panic is like a brush fire. ”

Lesson 3: What really caused the Great Depression? New York City's YMCA fed up to 12, 000 people daily. People went hungry. Newly homeless people put up shacks on unused or public lands, creating shantytowns. Blaming the president, people referred to such places as Hoovervilles.

Lesson 3: What really caused the Great Depression? People began to wander the country for work. “Riding the rails”. Hobos.

Lesson 3: What really caused the Great Depression? Dust Bowl Terrible drought strikes the Great Plains. Dakotas to Texas, America's wheat fields became a vast “Dust Bowl”. People removed the grass. Winds whipped up the arid earth and blackening the sky for hundreds of miles. Burying crops and livestock. Humans and animals caught outside died of suffocation when the dust filled their lungs. 22 storms in 1934 to 72 in 1937. In May 1934 piles of dust are dumped on Chicago. Storms reach D. C. Dust was everywhere- beds, candy, hair, teeth, dust to eat, dust to drink. Many sold their farms and known as “Okies” moved to California.

Lesson 3: What really caused the Great Depression?

Lesson 3: What really caused the Great Depression?

Lesson 3: What really caused the Great Depression? https: //www. youtube. com/watch? v=e. BEjb. Ux 8 ZF 4

Lesson 3: What really caused the Great Depression? Rabbits? ? ? https: //www. youtube. com/watch? v=YDxvc. Bu. S 5 A

Lesson 3: What really caused the Great Depression? Entertainment grew in the 1930 s to help people escape from their worries. Hollywood grew: Shirley Temple; King Kong; Mickey Mouse and Snow White and the Seven Dwarfs; The Wizard of Oz; Gone with the Wind Radio: Jack Benny; the Green Hornet; the Lone Ranger; Soap operas emerge, they get their name because they were sponsored by laundry soaps. Books: John Steinbeck Grapes of Wrath: the Joad family flee the Dust Bowl to California and earn $2. 00 daily to pick fruit.

Lesson 3: What really caused the Great Depression? 35 mm films are created by photojournalist. Grant Wood paints American Gothic

Lesson 3: What really caused the Great Depression? President Hoover told the press in 1930 that “the worst effects of the crash upon employment will have passed during the next sixty day. ” Hoover believed the rugged individualism would keep the economy moving. Industry leaders pledged to keep factories open, but they broke these pledges. Hoover increase spending in 1931 for public works, but few jobs were created. The Republicans lose many seats in the 1930 election. Hoover begins to help the banking system to help expand the money supply. NCC- a pool of money that allowed troubled banks to continue to lend money; still fails to meet nation's needs

Lesson 3: What really caused the Great Depression? Hoover refused to give federal money to impoverished families (relief). States and local governments, along with charity, should do this he believed. They were running low on funds. Then in July of 1932 the Emergency Relief and Construction Act is signed by Hoover. $1. 5 billion for public works and $300 million for states for direct relief. 1 st time U. S. gave direct relief funds. The damage had already been done and it could not reverse the accelerating collapse.

Lesson 3: What really caused the Great Depression? Angry Mood!

Lesson 3: What really caused the Great Depression? People begin looting. Crowds do “hunger marches” One million farms between 1930 and 1934 were foreclosed. Milk was dumped to level out prices and surplus. Bonus Army

Lesson 3: What really caused the Great Depression? After World War I, Congress had enacted a $1, 000 bonus for each veteran to be distributed in 1945. Veterans demanded an early payment. Oregon veterans begin marching to D. C. This is know as the “Bonus Army”. Eventually is comes to 15, 000. Marchers camped in Hoovervilles and empty buildings in D. C. Hoover orders the buildings cleared. General Douglas Mac. Arthur is called in to clear the buildings. He disobeys Hoover's orders and attacks the Hoovervilles with calvalry, infantry, and tanks. The shacks are burned, veterans are attacked. This tarnishes Hoover's presidency and hurts his reputation in the 1932 presidential campaign.

Lesson 3: What really caused the Great Depression? Hoover fails to resolve the economic crisis, but he did more than any prior president to expand the federal government's economic role.