The Causes of the The Causes of the Great DepressionGreat Depression

““One of the greatest assets any man One of the greatest assets any man or woman can have entering life’s or woman can have entering life’s

struggle is poverty” – R.B. Bennettstruggle is poverty” – R.B. Bennett

Mr. Danowski

Outline of the 1930s Outline of the 1930s

Introduction to the 1930sIntroduction to the 1930s The Causes of the Great DepressionThe Causes of the Great Depression How Canada Responded to the DepressionHow Canada Responded to the Depression Riding the Rails to the Relief CampsRiding the Rails to the Relief Camps The Emergence of Political AlternativesThe Emergence of Political Alternatives The Breakout of Canadian CultureThe Breakout of Canadian Culture The Rising Tide of Fascism and NazismThe Rising Tide of Fascism and Nazism

Four CornersFour Corners

For this activity you will go to different corners For this activity you will go to different corners of the room that are labeled:of the room that are labeled: Strongly AgreeStrongly Agree AgreeAgree DisagreeDisagree Strongly DisagreeStrongly Disagree

I will show three different statements and I want I will show three different statements and I want you to stand by the opinion that you agree with you to stand by the opinion that you agree with the mostthe most

The StatementsThe Statements

1. I am good with my money1. I am good with my money

2. “If you want to feel rich, count the things in 2. “If you want to feel rich, count the things in your life that money cannot buy”your life that money cannot buy”

3. Money is the root of all evil3. Money is the root of all evil

Game time!Game time!

Hot SeatHot Seat I will divide the class into two teams, each team sends I will divide the class into two teams, each team sends

one person to the front of the room, the two people one person to the front of the room, the two people stand facing their teamsstand facing their teams

I will write a term on the slide and without using I will write a term on the slide and without using rhymes or the word itself try to get the person in rhymes or the word itself try to get the person in “the hot seat” to guess the correct term in relation “the hot seat” to guess the correct term in relation to the business cycleto the business cycle

1 point for every right guess until the cycle is 1 point for every right guess until the cycle is complete, everyone must go or help, only 1 guess!complete, everyone must go or help, only 1 guess!

RecoveryRecovery: : ProsperityProsperity::

The Business Cycle

Recession:

Depression:

The Stock Market CrashThe Stock Market Crash

Black Tuesday, Oct 29, 1929: The New York Black Tuesday, Oct 29, 1929: The New York Stock Exchange crashes – millions of people Stock Exchange crashes – millions of people lose nearly all their money.lose nearly all their money.

Crowds gather on Wall St. after the stock market crash.

Why did the Stock Market Crash?Why did the Stock Market Crash?

Called Black Tuesday, October 29, 1929Called Black Tuesday, October 29, 1929 What were the factors that led to the stock What were the factors that led to the stock

market crashing? market crashing? Read page 82-83 in your textbook and do worksheet! Read page 82-83 in your textbook and do worksheet!

Why did the Stock Market Crash?Why did the Stock Market Crash?

During the 1920s, many people played the stock During the 1920s, many people played the stock market.market. Wanted to get rich quickWanted to get rich quick People bought stocks at low prices then would sell People bought stocks at low prices then would sell

them when they were high them when they were high

Stocks also bought on credit from stock brokersStocks also bought on credit from stock brokers What happens when the stocks increase in value? What happens when the stocks increase in value? Sell it and pay back the stock broker and keep the Sell it and pay back the stock broker and keep the

profitsprofits

The Crash of 1929The Crash of 1929

Too many people had bought stocks using Too many people had bought stocks using borrowed moneyborrowed money

When stock prices began to fall they could not When stock prices began to fall they could not cover their debts by selling off stockscover their debts by selling off stocks

A drop in stock market prices set off a panic A drop in stock market prices set off a panic wave in selling wave in selling

In a few hours the value of stocks fell 50%, In a few hours the value of stocks fell 50%, millions of dollars were lost, Thousands of millions of dollars were lost, Thousands of investors went broke, and this spread to Canada investors went broke, and this spread to Canada

““Sell, Sell, Sell!”Sell, Sell, Sell!”

It was “sell, sell, sell” as thousands of It was “sell, sell, sell” as thousands of speculators rushed to get rid of their shares speculators rushed to get rid of their shares before the prices went even lower.before the prices went even lower.

But there were fewer buyers and prices But there were fewer buyers and prices continued to plunge.continued to plunge.

Thousands of people saw their stocks become Thousands of people saw their stocks become worthless, almost overnightworthless, almost overnight

It was an early warning sign of the beginning of It was an early warning sign of the beginning of the Great Depression – the worst economic the Great Depression – the worst economic downturn in Canada’s historydownturn in Canada’s history

Causes of the Great DepressionCauses of the Great Depression

The Depression was a world wide economic The Depression was a world wide economic disaster, which affected countries as far away as disaster, which affected countries as far away as Germany, Norway, Chile, Japan and the United Germany, Norway, Chile, Japan and the United StatesStates

Many causes Many causes Due to the stock market crash in October 1929, Due to the stock market crash in October 1929,

there were frightened American and Canadian there were frightened American and Canadian consumers and business peopleconsumers and business people

Exit CardsExit Cards

You will be able to leave once you have given You will be able to leave once you have given me a piece of paper with the following on it:me a piece of paper with the following on it: What you are most interested about the 1930sWhat you are most interested about the 1930s How you learn bestHow you learn best A fun fact about yourself A fun fact about yourself What assignments are you most interested in doingWhat assignments are you most interested in doing

Examples: Letter or Diary assignment, role play Examples: Letter or Diary assignment, role play assignment, mock election, drawing political cartoons… assignment, mock election, drawing political cartoons… etc. etc.

HAVE A GREAT WEEKEND! HAVE A GREAT WEEKEND!

The Dust BowlThe Dust Bowl

Wheat prices collapsed by 1932.Wheat prices collapsed by 1932. An extreme drought hit in 1933, lasting many years.An extreme drought hit in 1933, lasting many years. The soil dried up and blew away, creating massive The soil dried up and blew away, creating massive

dust storms and leaving farmland barren.dust storms and leaving farmland barren. Many farmers lost their homes and property and were Many farmers lost their homes and property and were

forced to move.forced to move.

The Dust Bowl – a sand storm. Bankrupt farmers travel west, looking for work.

The Great DepressionThe Great Depression

Effects of the stock market crash Effects of the stock market crash spread through the economy, forcing spread through the economy, forcing many people and businesses into many people and businesses into bankruptcy.bankruptcy.

Soup kitchen helping feed the unemployed. A stock broker has to liquidate his assets.

UnemploymentUnemployment

By 1933, one in five Canadian workers By 1933, one in five Canadian workers had no job.had no job.

There was no unemployment insurance.There was no unemployment insurance. Two million people were on Two million people were on ‘‘reliefrelief’’..

Feeding the unemployed.