what was 1 reason that the Great Depression …bushwiedemannworld.weebly.com/.../cycle_ii_week_3_wh_.pdf•What caused the Great Depression? • Some believe that the stock market

Do Now 11/7/16• Based on your knowledge from Cycle I,

what was 1 reason that the Great Depression happened?

Last Week…• We had a strange week because of ACT Aspire

testing, but we did learn that: • Our new unit of study is about MONEY! • Money creates POWER! • POWER lets countries do whatever they want!

Today…We will focus on the time between World War I and

World War II.

What happened between WWI and WWII and WHY?

• What caused the Great Depression?

• Some believe that the stock market crash was the only main cause of the Great Depression, but this is untrue. • It was actually a worldwide event.

By 1929, the world suffered a major rise of unemployment–the number of people without jobs.

• During the first four years of the Great Depression (1929–1933) the amount of money that the US economy put out went down by 30%.

• What were the four main causes of the Great Depression?

• 1. Overproduction of goods and crops

• 2. Banking and Money Policies

• 3. Stock Market Action

• 4. Political Decisions

• How did overproduction cause the Great Depression?

• The Roaring Twenties were a time of huge economic growth, prosperity, and success.

• Average worker output grew by 32% and business profits grew by 62%

• What was really happening: • Under consumption–people were not buying and

using enough goods and couldn’t afford to buy what they wanted.

• Farmers were overproducing crops: • During WWI, European farms needed

American crops, but didn’t need as much anymore now that war was over.

• Since farmers were doing well during WWI, they took out huge loans to buy new farming equipment and buy more farmland.

In Summary…• High demands for goods and crops

led to overproduction causing many farmers and businesses to make more stuff or farm more crops than they could sell.

• Why did banking and money policies cause the Great Depression?

• Uneven distribution of wealth did not stop poor people and middle class from buying new luxury items like cars and radios. • Wages were not keeping up with the prices of

goods, but buying on credit let poor/middle class people get luxury items and make small payments on them each month. • Buying on Credit

• By the end of the 1920s, 60% of cars and 80% of the radios in the US were bought on credit!

• Federal Reserve Board– created by congress in 1907• Made to protect the US economy and set the

interest rate for loans given by banks

In Summary…• Banking policies allowed people to

buy on credit at first with lower interest rates and then higher interest rates causing the US economy to be in danger.

• How did stock market actions cause the Great Depression?

• The stock market showed that the US was doing well with money! • The stock market of the 1920s was doing great!

People were using loans to buy stocks

• Called buying on margin– pay some now and the rest later on.

• Small investors and businessmen were more likely to invest in the stock market because you only had to pay 10% up front.

• As 1920s business kept making more and more money, stock prices kept rising! • Buying stocks on margin was like taking out a

loan to buy a car. • Problems started when banks started loaning

money to stock buyers.

How does the stock market work?

You buy 100 shares of stock ofx $5.00 per shareHow much money

have you invested? $500.00Scenario #1

stock increases to $20 per share

100 shares of stockx $20.00 per share

How much are your 100 shares of stock now worth?

$2,000.00

How much profit have you made?$2,000.00 stock value

- $500.00 initial investment$1,500.00 net profit

How does the stock market work?

You buy 100 shares of stock ofx $5.00 per shareHow much money

have you invested? $500.00Scenario #2

stock decreases to $1 per share

100 shares of stockx $1 per share

How much are your 100 shares of stock now worth?

$100.00

How much money have you lost? $100.00 stock value

- $500.00 initial investment$400.00 net loss

Buying Stocks on Margin: Scenario A

investor stock broker

Hello, sir. I would like to

purchase 100 shares of stock in the Ford

Motor Company. How much is it going to cost me?

http://www.blankpixel.com/images/creations/digital/paintings/slackerdude/slackerdude-cartoon.jpg



Well, Ford stock costs $10 per

share. You want tobuy 100 shares?

Figure it out yourself,

smartguy!




Ummm…100 shares

x $10 per share

= $1,000.00Oh, well. I only have $100. I can’t afford 100 shares.




No, problem! Just give me $100 and you can owe me

the rest!




Like, how muchwould that be? Let

me think…$1,000 worth of stock - $100 paid= $900 owed

Alright, it’s a deal!!




Six months later, Ford stock doubles to $20 per share.

My 100 shares are now worth...

100 shares x $20 per share

$2,000




That’s great! Now pay me the $900 you owe

me!




No problemo! It was a pleasure doing business

with you!



investor

Now let’s figure out how much money I made!

$2,000 net worth - $900 owed $1,100 profit- $100 initial investment

$1,000 net profit


Buying Stocks on Margin: Scenario B


Six months later, Ford stock decreases to $1 per share.

My 100 shares are now worth...

100 shares x $1 per share $100




Too bad, hotshot! You still owe me

$900!




But I’m broke! What am I going

to do!




I don’t care what you do as long as you pay me back!


• What happens in October, 1929 that sparks the Great Depression?

• October 29, 1929: Black Tuesday • The stock market crashed and prices of stocks go way down!

• Over $16 million shares sold in a buying craze! • Losses more than $26 billion

• A month earlier, actually, trading of stocks increased rapidly. • The prices fell rapidly and people started to panic trying to

sell their stocks back before they lost all of their money.

• Buying on margin caused many investors to lose all of their money! • Banks began to close because they couldn’t make back their

own money • Between 1930 and 1933, more than 9,000 US banks

closed their doors forever. • When banks close, tons of US money disappears

from the economy and people lost their life savings!

• Why were political decisions a cause of the Great Depression?

• The Great Depression could have been less of a problem if people in the government had not made certain mistakes. • They took poor economic and political advice

• President Herbert Hoover did try to help, but it was too late! • Within 1 month of the stock market crash,

Hoover met with key business leaders asking them to keep wages for workers high, even though their profits were falling

• Hoover created the Smoot-Hawley Tariff which increased tariffs (taxes) on imports to the US by 50% • Thought this would keep Americans working,

but it failed because it closed the US off from trade with other nations

Parts of a News Article

Do Now 11/8/16• Define the term imperialism. Summarize

1 reason why countries in Europe were imperializing during the last part of the 19th century.

Yesterday…• We learned about the major causes of the Great

Depression in the US.

• There were four major causes. Describe what each of the following actually means in your notes: • 1. Overproduction • 2. Banking and Money Policies • 3. Stock Market Decisions • 4. Political Decisions

Today…• We will continue to talk about the Great

Depression, but focus on how the Depression affected average people during their daily lives.

• How did the Great Depression affect regular people?

• Unemployment and Relief: • In the American Midwest and Northeast

there were extremely high unemployment rates • Americans during this time were

trained to believe that success and failure were their own fault

• Many jobless males felt like a personal failure for not being able to support their families

• Most government thought welfare assistance was bad because it would cause Americans to not want to work hard for what they had.

• What was life like for people in cities?

• People wandered around in cities looking for jobs that didn’t exist

• They waited in long lines at the Salvation Army for food handouts to feed themselves and their families

• Men could be seen digging through trash in search of food

• Some young men became Hobos• Wandered the country on train

boxcars for adventure and odd jobs • (HO)meless and Jo(B)less=HOBOs

• What was life like for farmers?

• Flesh it Out! • How were farmers doing before the Great

Depression in the US?

• Before the depression, farmers were doing well and took out large loans to buy more land and get equipment to make farming faster and easier.

• When the depression started: • Farmer’s incomes went down by 60% • 1/3 of farmers lost their land • Dust Bowl–drought (lack of rain) in the American

Midwest• Created Black Blizzards–Dust Storms • Caused most farmers to not be able to farm any

crops and resulted in extreme poverty and lack of food

• How did the Great Depression affect family lives?

• Middle class and poor people had economic success during the 1920s. This was replaced with unemployment and people being unsure of their lives

• Women returned to sewing and making clothes for families instead of buying them since that was far less expensive!

• Families saved food and ran businesses out of their homes.

• Parents shared their homes with kids, grandkids, and grandparents

• Divorce rates went down because of the price, but the number of “separated families” increased because of the stress of the depression. • Unemployed men were embarrassed because they couldn’t

support families

• Marriage and birth rates decreased for the 1st time since the 1800s.

Do Now 11/9/16• Based on what you learned during Cycle

I, what was 1 way that the US tried to fix Germany’s financial (money) problems after World War I?

Yesterday…• We learned about how the Great

Depression affected average people and families.

Today…• We will be moving back in time to learn about an era were

powerful countries in Europe as well as the US were taking land over for their own benefit. • When a strong country takes over or controls a weaker

nation it is called…• Imperialism

• We will go over the reasons for European Imperialism during the late 1800s and early 1900s today!

• Important Vocabulary:

• Imperialism–the action of a more powerful country taking over and/or controlling a country with less power.

• Colonialism–when a strong country takes direct control of an area and turns it into a colony (part of the country in a different part of the world).

• Nationalism–the belief that one country (usually your home country) is the best country in the world!

• What is the Old Imperialism?

• Lasted from the 16th–18th century (1500s–1700s)

• During this time, European countries usually didn’t take over other countries to control them, they just built a series of trading stations.

• Agreements were usually made with respect to local rulers.

• This worked in India, China, Japan, Indonesia and other countries where trade flourished!

• What is the “New Imperialism”?

• Lasted from the 1870s up until 1914. Direct conquest (takeover) and the creation of a formal empire around the world

• Africa and Asia had very little European influence except on the coast for trading • New Imperialism brought entire continents under

European control • The Industrial Revolution caused countries to want

to take over new land.

• Flesh it Out! : What was the Industrial Revolution?

• European countries wanted new places to get raw materials and resources

• Motivated by political needs especially the building of empires and social and religious reasons

• How does European technology allow new imperialism to happen?

• Maxim Auto Machine Gun–colonized countries could not easily fight back with their less powerful weapons

• Steam Engines–Allow Europeans to sail deep into Africa down rivers and set up trade posts on the rivers.

• Railroads, Canals, and Steam Power–Make travel and trade faster and easier

• Medicine–Europeans figured out how to treat diseases, like malaria, which could be deadly and are primarily in places, like Africa, that Europe wanted to take over.

• Why do Europeans think it is their job to colonize less advanced areas of the world?

• White Europeans feel like it is their “duty” to help teach people of color around the world how to be civilized. • This is known as “The White Man’s

Burden”

• The white man saw themselves as better than other cultures in other parts of the world. • Phrase coined from a famous author,

Rudyard Kipling.

• Flesh it Out! • What kinds of things do you think white

European people would teach people from other places around the world?

• What is the ‘Scramble for Africa’ and why did it happen?

• The Scramble for Africa started in the 1850s and lasted through the early 1900s.

• During the mid 1800s, Africa was divided into different African cultures and there was tons of fighting between tribes. • People called it ‘The Dark Continent’ since what

happened there was pretty much unknown.

• By the 1880s, European countries started to industrialize and began to take over parts of Africa for resources• Found large diamond and gold mines!

• This caused even more countries to take land over!

• By 1880s, Europeans control 10% of Africa: By 1914, they controlled every part of Africa except Liberia and Ethiopia

• What happen at the Berlin conference?

• Since so many countries were taking over land in Africa, there was likely to be a conflict over which country colonized which part of Africa first• So, European countries held a conference

known as the Berlin Conference in 1884–1885.

• Countries established rules for colonizing in Africa. • Agreed that any European country could

control land in Africa, but that the must: • 1. Be strong enough to maintain control

• 2. Let other European countries know before taking over countries to keep conflicts from happening

Do Now 11/10/16• Last cycle, we learned that the US

dropped 2 atomic bombs on Japan during World War II. Predict, or use your previous knowledge to explain why Japan would want to be at war with the US in the first place, which eventually ended when Truman decided to drop two atomic bombs.

Yesterday…• We talked about Imperialism of European

countries in Africa during the last part of the 19th century (1800s).

• What reasons did countries in Europe have for imperializing?

• How did the Industrial Revolution help imperialism happen in Africa?

Today…• We will talk about imperialism in other parts of the

world, mostly in China and Japan during the 1900s.

• Europe was busy dealing with the ‘Scramble for Africa’, but still had interests and influence in Africa at the same time.

• What were things like in China before imperialism?

• China looked down on foreign nations and foreign trade because they felt that they were better than other countries. • They had mining, manufacturing, silk, and

other resources that were valuable, but they mostly were isolationist and traded very little with the outside world.

• Trade in China was controlled through a few selected ports. They had an advantage in trade and exported tea. • They only imported a few needed goods

from Great Britain.

• Eventually they run into problems in 1839 when Britain decides that they want to change their trade relationship with China.

• What are the Opium Wars and how do they affect trade relations with China?

• The Opium Wars happen between China and Great Britain in 1839–1840

• Great Britain realizes that China really wanted and needed opium, so they started to illegally smuggle it into China. • China tried to stop this, but it resulted in a Navy battle at sea.

• Ended with the Treaty of Nanjing in 1942• Opened up more port cities for trade with Great Britain and

allowed many British to work and live in the trade cities. • It also gave Hong Kong to Great Britain

• Results of the Opium Wars • Large population in China does not have enough food to feed

the people. Many die of starvation • The government of China becomes dishonest and corrupt• Opium is being sent in more from the British, so Opium

addiction rises

• What is Chinese open door policy and how does it affect trade relations?

• At the end of the 1800s, the US finally caught on to how useful trade with China could be.

• They made agreements with China to trade their goods there and, in exchange, they would protect China from being colonized (completely taken over) by strong countries in Europe.

• The Open Door Policy leads to the Boxer Rebellion in 1900 • The Chinese are frustrated by the privileges given to

the US and other foreign traders as well as protection given to Christians • Soldiers from many European countries put

down the rebellion, but it causes leaders of the Qing Dynasty to want government change

• Qing leaders take a world tour to modernize and become more like the west so that they can gain power and industry.

• How does Japan become imperialist during the 1800s?

• In 1853, the US sends a military general named Commodore Matthew Perry to Japan. • Threatens Japan to open trade with the US or face total

war. • Japan opens up 2 ports for trade with the US in

response. • The US in Japan quickly allows other countries to gain

rights for foreign trade in Japan.

• Meiji Era (1867–1912)–Japan has new ideas coming in from the west and starts to imperialize • In 1867–The shogun of Japan steps down and is replaced

with with Mitsuhito who makes Japan more modern

• By the early 1900s, Japan has railroads and manufacturing and is known as a fairly powerful country because of their money!

• How does Japan imperialize in Asia after they opened up trade with Europe and the US?

• Once Japan saw what imperialism was like, they wanted to start taking over other land for more resources to support their growing population and industry. • 1876– forced Korea to open trade with them,

but upset China.

• This starts a hands off agreement between China and Japan in 1885. Both China and Japan agreed to not mess with Korea.

• By 1894, neither Japan or China was staying out of Korea. Resulted in the Sino-Japanese War for control of Korea. • Korea was independent after this war, but

Japan gained their first colonies in the Pescadores Islands and Taiwan in 1895

• What other conflicts were the result of Japan’s new goal of imperializing?

• Japan and Russia go to war over Manchuria, a part of China, and Japan wins.

• 1905– Treaty of Portsmouth gave Japan Russia’s territory in Korea as a result of the fight between the two in Manchuria. • 1905– Korea was a protectorate of Japan

and by 1910, Japan had full control of Korea as a colony.

• Japanese had harsh rules for Korea: • Outlawed protests in Korea and shut

down Korean schools and newspapers.

Documents

what was 1 reason that the Great Depression …bushwiedemannworld.weebly.com/.../cycle_ii_week_3_wh_.pdf•What caused the Great Depression? • Some believe that the stock market