Unit 6 powerpoint #2 (the great depression causes of the great depression)

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Causes of Great Depression

Causes of Great Depression

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  • 1. Bell Ringer What is a “Depression”?
  • 2. Today’s Objective We will identify the events that led to beginning of the Great Depression.
  • 3. Causes of the Great Depression By Brad Harris, Grand Prairie HS SE: 2B, 2D, 16A, 16B
  • 4. The Great Depression The Great Depression was the severe economic depression that impacted the United States throughout the 1930s.
  • 5. The Depression Begins The Great Depression started in 1929 and lasted until the beginning of World War II.
  • 6. The Depression Begins Personal income, profits, prices, as well as trade dropped dramatically and there was massive nation-wide unemployment
  • 7. Causes of the Great Depression
  • 8. 1.Overproduction of Goods Manufacturers were producing more goods than they could sell, leading to layoffs in major industries
  • 9. 1. Overproduction of Goods Unemployment skyrocketed during the Great Depression, reaching as high as 28
  • 10. 2. Stock Market Speculation Investors in the Stock Market were buying stocks “on margin,” speculating that the price of the stocks would continue to go up.
  • 11. 2. Stock Market Speculation When stock prices began to fall in late October, 1929, it led to a massive sell off and the crash of the Stock Market
  • 12. 3. Numerous Bank Failures Bankers made unsound investments in the stock market. In the months following the Stock Market Crash, thousands of banks failed.
  • 13. 3. Numerous Bank Failures Because so many people were in debt, when they lost their jobs, they could not pay back their loans, leading to more bank failures
  • 14. 3. Numerous Bank Failures If a bank failed, people who had money in those banks lost their savings, leading to bank runs
  • 15. 4.Tariffs Slow World Trade The passage of large tariffs led to a slowdown of international trade.
  • 16. 4.Tariffs Slow World Trade The purpose of a tariff is to protect American businesses from foreign competition
  • 17. Hawley-Smoot Tariff Act The Hawley-Smoot Tariff was the highest tariff in U.S. history and led to foreign countries refusing to trade with the U.S., leading to more
  • 18. Black Tuesday (last 2 minutes)
  • 19. Coming Up… Hoover Reacts
  • 20. Today’s Objective We will identify the events that led to beginning of the Great Depression.
  • 21. Today’s Product I will create a bubble map that will describe the key events that led to the beginning of the Great Depression.