Classwork for Tuesday March 17, 2009

Causes of the Great Depression

Do Whatcha Know!
What kind of event do you think the top cartoon describes? What clues can you find to help you?
What do the two men in the bottom cartoon represent? What do you think happened to make them so different?

Intro to New Material
Read Chapter 14, Section 1: “The Nation’s Sick Economy” from page 482 to 489 to learn about how and why the nation’s economy hit rock bottom in 1929.
Use these questions to help you take notes:
•What were some economic problems that Americans faced before the stock market crash?
•Why was Herbert Hoover elected President in 1928?
•What was Black Tuesday?
•What were some causes of the Great Depression?
•How did the stock market crash affect the nation? The world?

1. Economic problems before Depression
     a. Decrease in demand, prices drop
     b. Crop surpluses
     c. Railroads go out of business
     d. CREDIT! People living beyond means
2. Hoover elected President in 1928
     a. Americans happy with Republicans, and he is one
     b. Ran against Al Smith, a Catholic
3. Black Tuesday
     a. October 29, 1929: stock market crashes
4. Causes of Great Depression
     a. Easy credit is too available
     b. Crop surplus
     c. Industries have old equipment, can’t compete
     d. Uneven distribution of wealth
5. Impact of stock market crash
     a. Banks go bankrupt
     b. People lose jobs
     c. Businesses close
     d. Hawley-Smoot Tariff Act: taxes imports from other countries
       i. The rest of the world enters a depression, too

Guided Practice
Use this graphic organizer to show the causes and effects of the stock market crash of 1929.

Independent Practice
Pretend that today is October 29, 1929. Write a journal entry for that day, pretending to be one of the following people:
-an investor who has lost his life savings in the stock market collapse
-a wealthy investor who has lost a substantial amount in the collapse
-a stock broker
-a banker
-a news reporter witnessing business at the New York Stock Exchange

Learning Log
Why did the Great Depression happen? How do you think it will effect everyday people like you and me?