Depression Causes

A

BC

E/A

D

US Economy 1914-1950

WWI 20s Depression New Deal WWII

There was a huge increase in war goods needed to fight WWI. The drop after WWI was slightly recovered during the 20s because of ads, the car and credit. During the Depression, the economy suffered a decline and a slight recovery during the New Deal. However, the real recovery was

WWII. Thus the New Deal FAILED!

Directions: Think about the possible outcomes of each scenario. Would the scenario cause an economic increase or decrease and why?

WWI is Over

Inflation causes prices to go up so the government tightens up credit

Removal of money from the economy

European nations rebound after WWII and can now produce needs and wants on their own

Credit

Ads

Surplus Up and Wages Down

Banks Closing Down and Not Distributing Deposited Money

Americans Start to Save Money In their Homes

Americans Lose their Jobs

Stock Market Crash Causes American Companies to Lose Capital

The Ferris Wheel: to understand this section you must remember WWI and the loans to European Nations. During the war, American banks lent money to the Allies. The

Allies then used that money to buy American war related war goods. That is the reason for the Allied Powers demanding German reparation payments.

US loans money to the Allied Powers

Germany pays reparations

Allies receive money from Germany to pay back Americans

How did Germany pay during the 20s?

US loans money to the Allied Powers

Germany pays reparations

Allies receive money from Germany to pay back Americans

US lends money to Germany

Stocks During the Depression

You all have 100.00 to either:1. Buy stocks2. Save your money3. Put it in the bank

Spare a Dime Song

They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread?Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime?Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half amillion boots went slogging through Hell, And I was the kid with the drum!Say, don't you remember, they called me Al; it was Al all the time. Why don't youremember, I'm your pal? Buddy, can you spare a dime?Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half amillion boots went slogging through Hell, And I was the kid with the drum!Say, don't you remember, they called me Al; it was Al all the time. Say, don't youremember, I'm your pal? Buddy, can you spare a dime?