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Warm-up: How did Henry Ford impact production in the US?

Warm-up: How did Henry Ford impact production in the US? What would happen if people saved more than they spent? Spent more than they saved?. Get. Money. When I say “go”: turn to someone next to you and share some ways that can earn you money.

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Warm-up: How did Henry Ford impact production in the US?

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Presentation Transcript

  1. Warm-up: • How did Henry Ford impact production in the US? • What would happen if people saved more than they spent? • Spent more than they saved?

  2. Get. Money. • When I say “go”: turn to someone next to you and share some ways that can earn you money. • When I say “go”: turn to someone next to you and share why someone might go broke, or lose money.

  3. The Great Depression

  4. Cash Rules Everything Around Me • Economics • The production, consumption and transfer of wealth • Many different perspectives on how wealth is created, grown, and lost

  5. Quick Jot: Many Money Problems • Who in the country should know how an economy works? Why?

  6. The Great Depression • 1929-early 1940s • The single greatest worldwide economic downturn in history. • 25% unemployment rate in the USA • 50% of banks failed

  7. Yeah, but, so What? • Why should we study the Great Depression? HISTORY

  8. “The Great Recession” • Today. • 2008-?? • Second greatest economic downturn in US History. • Fear of entering into a second major depression(?)

  9. Today vs. the Depression

  10. Part 1 of Guidesheet

  11. Before the crash • The Stock Market • The stock market was steadily climbing throughout the 1920s • Many investors bought stocks with loans, confident that they could repay the loan and make a profit after the stock price went up

  12. Cracks in the System • Eventually, the stock market ran out of new investors and prices stopped rising • Professional investors saw this coming and began selling their stocks • The stock market started declining so even more people started selling which lowered prices even more…(and so on and so on) • Investors loans were being called in and they couldn’t afford to pay them back

  13. The Crash! • October 29th, 1929 saw the biggest one-day drop in stock market history. It is known as Black Tuesday • About $30 billion were lost over the next two weeks (roughly equal to the total wages earned by all Americans in 1929)

  14. Part 2 of Guidesheet

  15. After the crash • ALL Americans stopped buying new things out of fear, lack of money, or both • Created a cycle of economic downturn • Americans were unable to pay for items they bought on credit so companies would repossess them • Unemployed move into “Hoovervilles”, or shanty-towns, named after US President Herbet Hoover

  16. Cycle of Depression Reduced spending Reduced production Higher unemployment Less jobs

  17. Part 3 of Guidesheet

  18. The New Deal • Economist John Maynard Keynes offers solution to the cycle of depression: Government spending • Franklin Delano Roosevelt is elected president and implements the New Deal • This program increases government spending in the USA.

  19. Recovery… • Slowly but surely, the US recovers.

  20. Today. • We study the Great Depression to avoid a repeat • Quick Jot: In what ways has the US today experienced similarities to the Great Depression? Differences?

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