The Bubble Bursts

1
The Bubble Bursts

• Unit 3
• Lesson 2

2
Objectives

• Identify major causes of the Great Depression
• Compare the effects of the Depression on Urban
  and Rural areas
• Explain political social effects of the
  depression.
• Analyze photos of the Great Depression and Dust
  Bowl
• Analyze a political cartoon of the era and
  identify the components of the image

3
Warm Up

• Identify major changes (political, economic,
  social) that took place during the Roaring 20s.

4
Hoover Administration 1929-1933

• Rugged Individualism
• Big govt endangered econ progress and personal
  liberty
• High tariffs
• Low taxes
• Free enterprise
• Balanced budget

5
Causes

• Unsound loans
• Over-speculation
• Decline international trade
• Tight fiscal policy
• Stock market crash (Oct 1929)

• Cause and Effect Flow Chart
• Industrial overproduction
• Sick industries
• Lack purchasing power
• Unequal distribution of wealth

6
The Crash

• All-time high Sept!
• Speculation
• Buying on margin
• Prices?, selling?, prices??
• Black Tuesday 10-29
• 15 billion losses
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7
Activity The Crash

• Take a few minutes to look at the cartoon on the
  stock market crash
• How does it break down the events?

8
The Depression

• Frontier closed no undiscovered economic
  opportunity
• Industrial economy not diversified
• Worldwide

9
Depth of the Depression

• Production, prices, profits down.
• Bankruptcies galore
• Massive bank failures
• 25 unemployment rates
• Wages slashed

10
Activity Urban and Rural Issues

• With a partner create a t-chart with one side
  labeled Urban and the other side labeled
  Rural
• Under each identify the issues people faced in
  these two areas as a result of the Depression

11
Hardship, Homelessness, Hunger

• Urban Issues
• Eviction
• Shantytowns
• Hoovervilles
• Soup Kitchens
• Bread Lines
• Discrimination

12
Hardship, Homelessness, Hunger

• Rural Issues
• Foreclosure
• Tenant farmers, Sharecroppers fired
• Dump milk, destroy crops
• Dust Bowl
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13
Impact

• Health
• Family Problems
• Psychological Issues
• Mind Set

14
Activity

• Photos of the Great Depression

15
Hoovers Response

• Normal business cyclework itself out
• People fend for selves, no fed aid
• 1930
• Public Works
• Reconstruction Finance Corporation
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16
Political Cartoon Activity
17
Closure

• Could the Great Depression have been prevented?
• Is there one event that could have changed it
  all?
• Who, in your opinion, had it worst in the Great
  Depression?