Friday December 4 Words of the day!

1. Friday December 4 Words of the day! Stock Market= purpose described on page 384 Speculator and speculative bubble = purpose described on page 849

2. Words of the day! Purpose of the Stock Market= provide businesses with money from investors to grow

3. Words of the day! Speculator = someone who takes a risk and buys something with the hope of selling it at a higher price Speculative bubble = unrealistic rise in economic values

4. December 4, 2008 HOT ROC: How do we avoid speculative bubbles?Are they positive or not or both? • Read 30.4 and add to your causes list

5. 30.3 Review: • What caused overproduction? • What caused under consumption?

6. More ideas from the 20s:More causes of underconsumption • Inheritance and income tax decreases • Union membership decreases • Farmers and credit • McNary Haugen=aid to farmers was vetoed 2x by Coolidge

7. 30.4 Quick History of the National Bank: • Hamilton suggested the 1st in 1789; used the elastic clause • 2nd bank chartered in 1816 • Jackson “killed” (vetoed) the Bank in 1832 • Wilson created the Federal Reserve in 1913: rules for private banks, sets interest rates to banks

8. 30.4: Federal Reserve: 1920s: Low interest rates ?effect? 1931: Raises interest rates ?effect?

9. 30.4 Hawley – Smoot Tariff of 1930 ?increase or decrease consumption?

10. Create cause and effect diagram Meet with “blues” or “reds” and post your causes in an a meaningful order that explains the causes of the Great Depression

11. December 7Hot ROC: What causes and what effects of the Great Depression are portrayed in this Photograph?

14. President Hoover (R) 1929-1933President G.W. Bush (R) 2001-2009

15. President F.D. Roosevelt (D) (1933-1945)President Barack Obama (D) ( 2009-?)

16. Application projects: 3 options • Follow and graph and analyze your stock portfolio and compare 1929 to 2009. • Create a graphic portrayal of the causes of the Great Depression ( at least 15 items) • Create an add to sell one of the New Deal agencies What, who, why, where, when, ideal

17. Prep Time:30 Min Cook Time:30 Min Ready In: 1 Hr 20 Min Original Recipe Yield 3 - 9 inch round pans   Ingredients • 2 cups boiling water • 1 cup unsweetened cocoa powder • 2 3/4 cups all-purpose flour • 2 teaspoons baking soda • 1/2 teaspoon baking powder • 1/2 teaspoon salt • 1 cup butter, softened • 2 1/4 cups white sugar • 4 eggs • 1 1/2 teaspoons vanilla extract Directions Preheat oven to 350 degrees F (175 degrees C). Grease 3 - 9 inch round cake pans. In medium bowl, pour boiling water over cocoa, and whisk until smooth. Let mixture cool. Sift together flour, baking soda, baking powder and salt; set aside. In a large bowl, cream butter and sugar together until light and fluffy. Beat in eggs one at time, then stir in vanilla. Add the flour mixture alternately with the cocoa mixture. Spread batter evenly between the 3 prepared pans. Bake in preheated oven for 25 to 30 minutes. Allow to cool. Nutritional Information Amount Per Serving  Calories: 427 | Total Fat: 18.3g | Cholesterol: 111mg

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28. President Hoover’s Response to the Depression 10.6.2 Understand the explanations of the principal causes of the Great Depression and the steps taken by the Federal Reserve, Congress, and Presidents Herbert Hoover and Franklin Delano Roosevelt to combat the economic crisis.

29. Election of 1928

30. Herbert Hoover • Son of a blacksmith • Grew up in Iowa. • Parents died when Hoover was young • Did not attend high school but attended night school • Entered Stanford in the University’s first class • Became a millionaire as a mining engineer before he was 40 • WWI successful Chair of Relief and Food Administration using volunteerism • Cabinet Secretary of Commerce "My boyhood ambition was to be able to earn my own living, without the help of anybody, anywhere.” - Herbert Hoover • How did Hoover’s background influence his response to the Great Depression?

31. How bad was the Depression? • Between 1929 and 1933, 100,000 businesses failed • Corporate profits fell from $10 billion to $1 billon • Between 1929 and 1933, 10,000 banks failed—2.5 billion lost in savings • By 1933, at least 13 million workers were unemployed (25% of the work force) and many were underemployed • Malnutrition increased, as did tuberculosis, typhoid and dysentery

32. Herbert Hoover’s Beliefs • Believed in self-reliance, rugged individualism, and hard work • Government help  encourage people’s dependence on handouts • Private charities should help

33. Word of the day: Unemployment • Vocab Term • The condition of being out of work; the number of unemployed persons relative to the potential labor force

34. Hoovervilles Shantytowns that homeless Americans in many cities built out of crude cardboard and tarpaper

35. So what did Hoover do?T-Chart

36. So what did Hoover do? • Rejected direct relief • Urged Americans to turn to community and church resources • Gradually used federal agencies to address issues • Set up RFC (Reconstruction Finance Corporation) in 1932 to make loans to stimulate economy in a "trickle-down" manner

37. 1929 • October - The stock market crash "Any lack of confidence in the economic future or the basic strength of business in the United States is foolish."--President Herbert Hoover 1930 • March - More than 3.2 million people are unemployed • President Hoover remained optimistic stating that: "all the evidences indicate that the worst effects of the crash upon unemployment will have passed during the next sixty days.“ 1931 • February - "Food riots" begin to break out in parts of the country. People smashed the windows grocery markets and made off with the food. • Resentment of "foreign" workers increases along with unemployment rolls.

38. 1932 Reconstruction Finance Corporation • In January, Hoover formed the Reconstruction Finance Corporation in order to lend $2 billion to banks, insurance companies, building and loan associations, agricultural credit organizations and railroads. • In July,R.F.C. the was authorized to lend money to needy states for relief and public works projects.

39. 1932 Bonus Army • Determined to collect their "bonus" pay for service, between 15,000 to 25,000 World War I veterans gather and begin setting up encampments in Washington, D.C. • A bill was introduced into Congress authorizing immediate payment of "bonus" funds. Passed in the House but not in the Senate. • In July, Hoover orders the removal of the veterans who were determination to stay camped out until they got their pay. Troops used tear gas and tanks to push the veterans out of D.C.