Understanding the Causes of the Great Depression

February 11, 2013Do Now: Write down everything you know about the Great Depression… When did it happen, why, what was going on?

Cause & Effect • What does this mean? • If Johnny doesn’t study for his test tomorrow what will the most likely effect be? Cause?

4 Main Causes of the Great Depression • Stock market crash – Black Tuesday • United States Banks Collapse • Americans reduce spending and business cut workers • Government tries to help by passing the Smoot-Hawley Tariff

First Cause • Stock market crash – Black Tuesday • October 29, 1929 • Too much bought on credit • About $30 billion were lost over the next two weeks (roughly equal to the total wages earned by all Americans in 1929)

Second Cause • United States Banks Collapse • The stock market crash caused people to not be able to pay back their loans • This caused banks to not be able to give people their money • About 10% of banks in the U.S. closed in the first two years of the GD as a result

Third Cause • Americans reduce spending and business cut workers • ALL Americans stopped buying new things out of fear, lack of money, or both • Reduced shopping led to reduced production which led to a reduction in the workforce

Third Cause Cont. Reduced spending Reduced production Higher unemployment Less jobs

Youtube Clip • http://www.youtube.com/watch?v=JDcR-ZS5fyw

Fourth Cause 4. Government tries to help by passing protective tariffs (?) • Smoot-Hawley Tariff • Congress passed the Smoot-Hawley Tariff Act which increased taxes on imports • This was designed to protect American jobs by making us rely on American factories • Other countries raised tariffs on American goods in response

Group work Objective • You will have 15 minutes to complete the Causes of the Great Depression research • You may work in groups of 3 to complete your research. • Be sure to gather as many details as you can now to make your writing easier.

Writing Assignment • Using your research, you need to independently write a paragraph correctly sequencing those events. • Use the sentence starters that have been posted as a guide to help you begin your writing.

Exit Ticket • What was the “muddiest” point from today’s lesson? What don’t you understand yet?

Understanding the Causes of the Great Depression