1 / 23

Causes of the Great Depression

Causes of the Great Depression. First, let’s see what you know . On a scale from 1 to 10, how much do you know about the causes of the great depression?. 1 2 3 4 5. 6 7 8 . 9 10. Perhaps you could benefit from some information on the causes of the Great Depression. CLICK TO CONTINUE.

dava
Download Presentation

Causes of the Great Depression

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Causes of the Great Depression First, let’s see what you know.

  2. On a scale from 1 to 10, how much do you know about the causes of the great depression? 1 2 3 4 5 6 7 8 9 10

  3. Perhaps you could benefit from some information on the causes of the Great Depression. CLICK TO CONTINUE

  4. Choose which subtopic you would like to read about: Stock market crash Bank crisis Challenge: Independent causes How Hoover tried to help

  5. Would you like to read about the topic, or skip ahead to the game? Read about the topic Skip to game

  6. Which game would you like to play? Stock market crash Challenge: Independent Causes Bank crisis How Hoover tried to help

  7. Stock Market Crash It is widely believed that the stock market crash caused the Great Depression. At the time, the stock market was referred to as a “bull stock”. The stocks kept rising, and there was rigorous buying and selling. Some people even manipulated the stock market to make more money. This approach made a few people rich, but the bull market was not good for long-term investing. Stocks quickly went down, and margin buyers panicked on Black Tuesday. Unfortunately, more than the entire amount of U.S. currency was out on loan, so the U.S lost $8.5 billion when the stock market crashed. (Causes of the Great Depression). Despite all this, some historians believe the crash and the depression are only partially related. (The U.S. Stock Market Crashes On Black Tuesday, Oct 29, 1929) Go to game

  8. Bank Crisis Banks’ heavy stock investments caused them to lose a lot of money when the stock market crashed. Banks also lost money when margin buyers were unable to pay back their loans. The banks closed, and people lost their money that they invested (Deverell and White). Every time a bank tried to close, people rushed to withdraw their savings. The banks didn’t have enough money to pay back all the loans, and were forced to close. These became known as bank runs (Banking in the 1930s). Over 1400 banks were closed. The U.S. lost $725 million from banks alone (Banking in the 1930s). By this time, the economy was in serious trouble. Banks had $7.37 billion, and the U.S. was $40.5 billion in debt. Just one week before Roosevelt’s inauguration, one quarter of a billion dollars was lost in gold from a federal bank. A bank holiday was created so that the banks could have a chance to be inspected without bank runs and other bank activity. At first, people panicked, but upon inspection of the banks, some issues were solved (Banking in the 1930s). Go to game

  9. How Hoover tried to help Many people blame President Herbert Hoover for this mess. He didn’t create all of it, but he certainly played a part. Some officials thought it was best to leave the problem alone; “‘The leave-it-alone liquidationists headed by the secretary of the treasury Mellon…felt that the government must keep its hands off and let the slump liquidate itself’” (Causes of the Great Depression). Hoover did try to help the depression, but most attempts were useless or worse. Hoover increased Federal spending and taxes, and even raised tariff rates. This proved disastrous, and caused a trade war. The U.S. sank deeper into the Great Depression (Herbert Hoover). Hoover then tried helping individuals through philanthropic organizations and churches, but did not directly assist the homeless and unemployed. Furthermore, after World War One, the United States demanded money from Europe. As a result, most of Europe was in an economic crisis. Adding insult to injury, Hoover called on Europe for monetary assistance. When Hoover left office, unemployment rates had only improved 1% (Herbert Hoover). Go to game

  10. Independent Causes While all of these events may have contributed to the Great Depression, there are other theories out there, two of which are Keynesian and Monetarist. Keynesians believe that too much investing caused lower interest rates. Lower interest rates meant more investing and more money lost in the crash. On the other hand, Monetarists believe that the crash was an ordinary recession, but faulted monetary policies turned it into the depression (Causes of the Great Depression). Along with these theories, other things are believed to have caused /worsened the depression. After World War One, Europe owed money to the U.S. The U.S. expected all debts to be paid back fully, even though it knew Europe couldn’t (Thomas and Mary). As a result, both parties fell into depression. Companies’ spending may also have contributed; using more of their profits for expenses than wages. Even the agricultural industry might have been a problem; it hadn’t fully recovered from the recession of ’22 and’23 (Thomas and Mary). Whatever caused it, the Depression was a major problem; total debt to GDP levels was 300%. (Causes of the Great Depression) Go to game

  11. Stock market Crash Game Answer the question correctly before you lose all your money. Continue

  12. Stock Market Crash Game What was a bull stock? A. when stocks were all worth over $300 B. When stocks kept falling C. When there was rigorous buying and selling D. When people manipulated the stock market to make more money.

  13. Incorrect!! Try again

  14. Stock Market Crash Game What was the date of Black Tuesday? • September 30, 1928 • August 31, 1928 • September 20, 1928 • October 29, 1929

  15. Incorrect!! Try again

  16. Stock Market Crash Game The bull market was perfect for long-term investment. TRUE FALSE

  17. Incorrect!! Try again

  18. Stock Market Crash Game How much money did the U.S. lose in the crash? • £8.5 million • $8.5 million • $0.0085 trillion • $26 million

  19. Incorrect!! Try again

  20. Bank crisis True/false: • Banks lost $725 million . • Bank runs were when people threatened bank owners in the depression for money. • Bank holidays fixed the bank crisis immediately. • Bank runs greatly helped the banking business. • Banks lost money when margin buyers were unable to pay back loans.

  21. How Hoover tried to help Do you have what it takes to be president? Based on Hoover’s actions, choose the correct action for each situation: You need to fix the depression. What do you do? 1. increase federal spending and taxes 2. find ways to create trade and jobs 3. leave it alone Europe owes money. What do you do? 1. demand all money 2. grant Europe amnesty from debts 3. have money paid back slowly

  22. Independent Causes Matching: 1.Keynesians a. faulty spending habits 2. Monetarists b. demanded full payment from Europe 3. U.S. 4. Agriculture Industry c. had recession in ‘22 and ‘23 5.Companies d. believed that monetary policies were responsible for the Depression e. believed that too much investing and not enough spending were responsible for the Depression

  23. CONGRATULATIONS! Great job completing “The Causes of the Great Depression” games.

More Related