Good place to point out that the spiral of depression is the opposite to the cycle of prosperity. Even discuss in relation to Henry Ford and the impact on the other industries that produced his standardised goods.
Why not print this presentation out using the print handout command and select 3 slides per page. The students can then make notes as they go along!
100,000 businesses failed. Stock values fell from $89 billion to $15 billion. From 381 to 41. $74 billion was lost. 25% unemployment rate [15 million](125 million in the U.S.) [Unemployment was 3% in 1929.] Unemployment stayed above 14.3% from 1931-1940. Average unemployment was 18% 10,797 banks failed out of over 25,000, taking the life savings of 9 million people. The Great Depression [How Bad Was It?]
In some cities, girls danced only for 10 cents . 333,000 could not go to school. M any schools were open only three days a week for eight months. One million lost their homes. Housing starts dropped 90%. GDP dropped from $104 billion in 1929 to $56 billion in 1933. “ That will be .10”. The Great Depression
The Great Depression was so bad that when Bonnie and Clyde were shot, [Clyde’s body had 187 bullet holes and Bonnie’s body had 52 bullet holes] that morticians complained that they couldn’t hold embalming fluid.
Their “death hats” were auctioned for $32,000. Clyde’s “death shirt” auctioned for $85,000 “ Death car” w. 160 bullet holes auctioned for $250,000. 1967 “Movie Death car” Many of the bullets went thru the car door, Clyde’s body, Bonnie’s body, then out the other side of the death car. T he “32 Ford” & “ 57 C hevy” are the cornerstone cars of the hot-rod business. And – the Chrysler 300
Apple sellers could make $1.15 profit on 72 sold apples. Many factory wages went from .55 an hour to .05 an hour. Agriculture collapsed. Prices and wages dropped around 25%. Factory production dropped 50%. Auto production fell from 4.5 million cars in 1929 to 1.1 million in 1933. Those who checked into hotels were asked, “ For sleeping or jumping”? The Great Depression [continued]
Causes of the Depression Fewer goods are sold . Demand drops. In order to stay in business companies cut wages People lose their confidence & start saving their money Demand drops even further. Companies are forced to cut costs by laying people off The Spiral Of Depression Even more people Lose their confidence And spend less money People lose their jobs.
I'll have to see my broker Find out what he can do. 'Cause I'm in the market for you. There won't be any joker, With margin I'm all through. 'Cause I want you outright it's true. You're going up, up ,up in my estimation. I want a thousand shares of your caresses too. We'll count the hugs and kisses, When dividends are due, 'Cause I'm in the market for you "I'm In The Market For You” by, George Olsen vocal by Fred MacMurray Date: February 9, 1930
Shantytowns, soup kitchens and bread lines appeared
* People that bought stocks on margin (credit) could not repay their debts. The Philanthropist by, Herb Block (Dec. 5, 1930) During the Great Depression approximately 25% of the workforce was unemployed. People who lost their jobs began selling five-cent apples on the streets of American cities, providing a symbol of the economic hardships of the era. * People that had invested their savings in stocks had little or nothing left.
There once was a time when everything was cheap, But now prices nearly puts a man to sleep. When we pay our grocery bill, We just feel like making our will -- I remember when dry goods were cheap as dirt, We could take two bits and buy a dandy shirt. Now we pay three bucks or more, Maybe get a shirt that another man wore -- Tell me how can a poor man stand such times and live? Well, I used to trade with a man by the name of Gray, Flour was fifty cents for a twenty-four pound bag. Now it's a dollar and a half beside, Just like a-skinning off a flea for the hide -- Tell me how can a poor man stand such times and live? "How Can A Poor Man Stand Such Times And Live?” written and played by Blind Alfred Reed , Dec. 4, 1929, New York City
Oh, the schools we have today ain't worth a cent, But they see to it that every child is sent. If we don't send everyday, We have a heavy fine to pay -- Tell me how can a poor man stand such times and live? Prohibition's good if 'tis conducted right, There's no sense in shooting a man 'til he shows flight. Officers kill without a cause, They complain about funny laws -- Tell me how can a poor man stand such times and live? Most all preachers preach for gold and not for souls, That's what keeps a poor man always in a hole. We can hardly get our breath, Taxed and schooled and preached to death -- Tell me how can a poor man stand such times and live?
Oh, it's time for every man to be awake, We pay fifty cents a pound when we ask for steak. When we get our package home, A little wad of paper with gristle and a bone -- Tell me how can a poor man stand such times and live? Well, the doctor comes around with a face all bright, And he says in a little while you'll be all right. All he gives is a humbug pill, A dose of dope and a great big bill -- Tell me how can a poor man stand such times and live?
People waiting in line for bread and soup and also living out of their car.
ESSENTIAL QUESTIONS : 1. How did Roosevelt try to restore the confidence of the American people? 2. What programs were created in FDR’s first 100 days?
Key Quotes: FDR’s Inauguration Speech This Nation asks for action, and action now. Our greatest primary task is to put people to work. I shall ask Congress for broad executive power to wage was against the emergency.
Reversing the Spiral of Depression Cycle of Prosperity! Democrats called this Process ‘ Pump Priming’ Government Spending $ Alphabet Agencies More Jobs More Spending Demand for goods increases More goods have to be produced More people with Jobs = more pay $ More Spending Demand for goods increases More goods have to be produced More Jobs More Pay = More Taxes
ESSENTIAL QUESTIONS : How did the Depression affect minority groups? What radical political movements gained influence? Why did people criticize Roosevelt and the New Deal? How did the Second New Deal create new economic and social roles for government?