Transcript Pop Quiz: - Kingsley Area Schools K-4

Bell Work
Create a flow chart to explain the Stock
Market Crash of 1929 and how it
effected the ENTIRE economy
(no notes)
The Crash of 1929
The Crash of 1929
President
Hoover
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“We in America
are nearer to the
final triumph over
poverty than ever
before”. – 1928
Type I: Why did
Hoover say this?
Was he correct?
6+ lines
Great Depression
Type
1. Make up a story to
describe the top
picture during
Depression Era.
8 lines, 6 minutes
Great
Depression
Problems before 1929
Problem
Example or Definition
Effect on US Economy
Slowing Industries
Railroads, textiles,
steel, lumber, mining
Unemployment
increase, less money
for consumers to
spend
Farm Debt
Income declined
from $10 to $4 billion
Price Supports
(subsidies): Gov’t
buys surplus crops at
guaranteed prices
Credit
Buying goods now
and paying for them
later
Debt. Cut back on
spending
Distribution of Income
Income rose for
wealthiest 1%
70% earns less than
standard of living
Problems before 1929 cont
Stock Speculation
Buying stocks for a
quick profit
Investors did not
consider the merits of
the company, some
stocks became
inflated
Margin
Buying stocks on credit
Much of the stock
market’s value was
superficial
Tariffs
Taxed good coming
from other countries
(imports)
Less countries bought
US exports. Less US
income & jobs
Economic Indicators
Statistic
1928
1933
2006
Bank Failures
499
4004
N/A
Business
Failures
24,800
20,00
0
N/A
Unemploymen
t
6%
25%
5%
Income and
Spending
700 /
600
400 /
390
N/A
Is this
a
good
indicat
or?
Great Depression
What is the Federal Reserve
Bank? What is it’s purpose?
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1913 to provide the nation with a safer, more
flexible, and more stable monetary and financial
system
‘Lenders of last resort’
Bank Closures
1. Massive withdrawals, lack of funds, lack of
consumer confidence
2. Federal Reserve did not lend $ = Banks fail
3. Money in circulation decreases
• Result: Less spending / unemployment increases
Hoovers Response

Hoover believed…
People should help themselves
Be Cautious
Slow Response
What was a “Hoover Ville”? “Hoover blanket?”
“Hoover Flag” ?
Hooverville: Grouping of homeless people / tents
Hoover blanket: a newspaper
Hoover Flag: empty pockets
Hoovers Plan
Plan
Purpose
Problem
Cooperatives
Private
companies
working together
Indirect
Federal Home
Loan Bank Act
Lower Mortgage
rates
Too Little, too
Late
Reconstruction
Finance
Corporation
$2 billion had to
“trickle down”
through the
banks.
Indirect
Intro seabiscuit
The Dust Bowl
Bell Work
Type I: 4 lines…

Imagine you have no
home, no money to get
food or new clothes, and
no gov’t programs to help
you….WHAT WOULD YOU
DO?
Bell Work
From the Seabiscuit movie:

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Compare Mr. Riddle to
Mr. Howard
5 lines, 5 minutes
Bell Work
From the Seabiscuit movie:
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Discuss which
characters you have
seen thus far – w/ a
partner
FDR - 1932

This great Nation will endure as it
has endured, will revive and will
prosper. So, first of all, let me
assert my firm belief that the only
thing we have to fear is fear itself
– nameless, unreasoning, unjustified
terror which paralyzes needed
efforts to convert retreat into
advance.
FDR
The Problems
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a. Financial: Stock market crash, Bank
Failures, Unemployment, Homelessness,
Poverty
b. Physical: Hunger
c. Environmental: The Dust Bowl
D. Psychological Effects: Lack of
Dignity
FDR
Hoover vs. FDR
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Franklin Delano Roosevelt (D) a.ka. FDR
defeats Hoover in 1932
Wins by 7 million votes.
• Democrats win House and Senate.
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Consumer spending down = gov’t income
down (taxes)
Hoover’s Response: Largest income tax
hike ever (Less $ = Less spending)
FDR’s Response: Increases Gov’t spending
(Doesn’t solve, but slows)
New Deal – CCC
I.
1st 100 Days = “Honeymoon” period
Bank holiday: Temporarily Closed the Banks
The New Deal: Relief, Recovery, Reform
New Deal - NRA
Acron
ym
Full Name
Purpose
Relief & Recovery
FERA
Federal Emergency Relief
Agency
Jobs | Distribute relief $
CCC
Civilian Conservation Corps
Jobs | Men 18-25 only
PWA
Public Works Agency
Jobs |Build roads and dams
CWA
Civil Works Administration
Jobs | Government offices
NRA
National Recovery
Administration
Business | Fair competition,
Unions, minimum wages
AAA
Agricultural Adjustment
Administration
Farms | Farm subsidies
TVA
Tennessee Valley Authority
Farms | Hydroelectric Dam
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New deal successes: Income up,
Factories reopened, New Jobs
Problems
Lower income than 20’s, Farm prices
low, moved slow, Gov’t Spending
More Unions = More strikes
American Liberty League – Anti-FDR
“Packing the Court”

FDR Challenged in the Supreme
Court
• NIRA and AAA declared
unconstitutional: ‘separation of
powers’
• FDR Attempts to increase # of
Supreme Court justices
Public outrage – “Packing the
Court”
Acron
ym
Full Name
Purpose
SSA
Social Security
Administration
Jobs | Pension for
retirees &
handicapped
WPA
Works Progress
Administration
Jobs | Build schools,
airports, hospitals and
playgrounds
NLRB
National Labor
Relations Board
Business | Settle
disputes between
employers and
workers
Banking Act of 1935
Business | Set $ supply
and interest rates
Who was FDR?
Who was FDR?
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a. Optimist –“The only thing we have to fear
is fear itself”
b. Handicapped
c. Fire Side Chats – Radio
d.HOPE
e. Re-elected in 1936 AfricanAmerican/Minority Vote
FDR supports Civil Rights verbally, but not in
Legislation
Impact of the New Deal
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a. *Role of Government Changes
b. Conservative to Liberal
Conservative: small government,
low spending, hands off
Liberal: big government, high
spending, hands on
c. Government as protector of bluecollar Americans
Labor Unions Flourish
Deficit Spending

Deficit Spending: Gov’t spends more than
they take in (taxes)
#1 Principle of Econ prior to 1929 –
BALANCE THE BUDGET
Post 1929:
current National Debt
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Federal Deficit vs. Unemployment (p.517)
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Bell Work: Type II Writing
Compare FDR to the
Republican Presidents of the
1920’s (Hoover, Coolidge,
Harding)
 8 lines in 8 minutes
 Skip Lines

National Debt
Type II Writing
Type II: Describe
how FDR Changed
American
Government
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Quiz #1
1)
2)
3)
4)
5)
What does FDR stand for?
What were FDR’s radio addresses
called?
The 1st 100 days of a Presidency is
called what?
What does CCC stand for?
In what year was FDR elected?
Quiz #2
1)
2)
3)
4)
5)
What party was FDR from?
Who was president before FDR?
What were the three R’s of the New
Deal?
What did FDR use to “fill the bathtub”
or fix the depression?
While FDR’s plan helped ease the
depression it greatly increased our
national ______________ .
Bell Work: Type II Writing
Explain how the FDR’s New
Deal was like fixing a leaking
bathtub
 6+ Lines
 Skip Lines
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Bell Work:
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Define Capitalism
Capitalism
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Capitalism: An economic system based on a
free market, open competition, profit
motive and private ownership of the
means of production.
Answer with a partner:
1.
Why does Capitalism compliment
Democracy?
2.
What are the pros and cons of Capitalism?
Type I
Is Government
spending a good thing
or a bad thing?
 5 lines, 5 minutes
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