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Join us from December 2-5 and December 10-11 for an engaging exploration of the Great Depression's causes through a unique classroom simulation. Discuss the meaning of a political cartoon with your partner, identify three key causes of the Great Depression, and participate in activities that highlight the impact of inflated stock prices, overproduction, and governmental mistakes. Reflect on what actions the government might take in response to these economic challenges and consider what responses would be effective. Engage in critical thinking and collaborative discussions to deepen your understanding of this pivotal historical event. ###
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We are in this room Dec 2-5 and Dec 10-11 • Discuss the meaning of this political cartoon with your partner • Tell your partner 3 causes of the Great Depression (in your opinion) Bell Ringer
Causes of the Great Depression Tuesday: December 3, 2013 Main Idea: Inflated stock prices, overproduction, high tariffs, and mistakes by the Federal Reserve led to the Great Depression
Read your card. • Get your supplies: • Farmers – Food • Manufacturers – Pencils • Citizens – Black notes • Bankers – Red notes Simulation
Bull market – long period of rising stock prices • 1920s Bull market led to increased stock market investment • Buying on margin – small down payment (10%) and loan from stock broker (got commission and interest) Stock = 5 tokens Banks can keep your money for saving and give loans Bread = 2 tokens Pencils = 1 token Booming Economics 1920s
Margin calls – stockbrokers call investors and tell them they should sell stocks for fear the market will go down further • Customers put stocks up for sale • Market tailspins October 21, 1929
Market plummets October 24, 1929 Black Thursday
Stocks lost 10-15 billion dollars in value October 29, 1929 Black Tuesday
Hawley-Smoot Tariff • Increased tariffs in effort to protect American businesses June 1930
Fed raises interest rates • Bankers cut back on loans Recession Continues
Answer these questions in your notes. Write 3 sentences for each question. • What do you think the government will do in response to these problems? • What do you think the government should do in response to these problems and why? Use any extra time to work on your review packet (Due 12/13/2013) Reflection