US HISTORYUnit 5 Week 1

Homework for the Week• Monday, 12/2

• Read and Cornell Notes on p.383-385

• Tuesday, 12/3• Finish the Great Depression Recipe• Read and Cornell Notes on p.393-395• Study vocab

• Block Day 12/4 & 12/5• Read and Cornell Notes on p.426-427

• Friday 12/6• Study vocab for card quiz on Tuesday. Glossaries are also due.

Agenda, 12/2• New Unit: Great Depression• HOT ROC• Yee Haw game• Interpreting the game• Read p.30.1

• HW: Read and Cornell Notes on p. 383-385

HOT ROC

•What are the pros and cons of speculation?

YEE HAW!Experiential Exercise

Procedure• Each pair begins with 5 pts• Before each round, you and your partner will decide

among the following three options:• Hold Tight: Keep what you have• Play it Safe: Potential for modest gains• Go for the Gold!: Potential for amazing gains• The option you choose will determine how many points you earn in

that round.

• The two teams with the highest scores at the end of the game will earn 10 points of extra credit on the final exam.

ProcedureHold Tight

Play it Safe

Go for the Gold

Points earned in the Round

Running Total (start with 5 pts.)

Round 1

Round 2

Round 3

Round 4

Round 5

Round 6

Round 7

Round 8

Round 9

Round 10

• For each round, check the box to indicate which option you are choosing.

• This must be done before the dice is rolled and cannot be changed

• After the dice is rolled, determine how many points you earned in that round.

• After each round, compute and enter your point total in the “Running Total” column

• We will keep a running total class score as well.

ProcedureHold Tight

Play it Safe

Go for the Gold

• Round 1 0 +1 +2 +3 +4 +5 +6 +7• Round 2 0 +1 +2 +3 +4 +5 +6 +7• Round 3 0 +1 +3 +4 +5 +6 +7 +8• Bonanza Chips Time!!

• You may buy Bonanza chips at this point, which will give you the possibility of increasing your score.• 2 Chips mean you can multiply your points earned by 2 for each round. Cost= 5 points• 3 Chips mean you can multiply your points earned by 3 for each round. Cost = 10 points• Deduct the cost by adjusting the amount in the “Running Total” column.

ProcedureHold Tight

Play it Safe

Go for the Gold

• Round 4 0 +1 +4 +5 +6 +7 +8 +9• 2 Bonanza Chips +2 +8 +10 +12 +14 +16 +18• 3 Bonanza Chips +3 +12 +15 +18 +21 +24 +27

• Round 5 0 +1 +2 +3 +4 +5 +6 +7• 2 Bonanza Chips +2 +4 +6 +8 +10 +12 +14• 3 Bonanza Chips +3 +6 +9 +12 +15 +18 +21

• Bonanza Chips Time!!• You may buy Bonanza chips at this point, which will give you the possibility of increasing your score.• 2 Chips mean you can multiply your points earned by 2 for each round. Cost= 10 points• 3 Chips mean you can multiply your points earned by 3 for each round. Cost = 20 points• *If you previously purchased two Bonanza chips and you would like to increase your total to 3, the cost

is: 8 points.• Deduct the cost by adjusting the amount in the “Running Total” column.

ProcedureHold Tight

Play it Safe

Go for the Gold

• Round 6 0 -10 -40 -40 -40 -40 -40 -40• 2 Bonanza Chips -20 -80 -80 -80 -80 -80 -80 • 3 Bonanza Chips -30 -120 -120 -120 -120 -120 -120

• Round 7 0 +1 -4 -5 -6 -8 -10 -20• 2 Bonanza Chips +2 -8 -10 -12 -16 -20 -40• 3 Bonanza Chips +3 -12 -15 -18 -24 -30 -60

• Round 8 0 +1 +2 +2 +2 +4 +4 +4• 2 Bonanza Chips +2 +4 +4 +4 +8 +8 +8• 3 Bonanza Chips +3 +6 +6 +6 +12 +12 +12

• Round 9 0 +1 -4 -5 -6 -8 -10 -20• 2 Bonanza Chips +2 -8 -10 -12 -16 -20 -40• 3 Bonanza Chips +3 -12 -15 -18 -24 -30 -60

• Round 10 0 -10 -4 -5 -6 -8 -10 -20• 2 Bonanza Chips -20 -8 -10 -12 -16 -20 -40• 3 Bonanza Chips -30 -12 -15 -18 -24 -30 -60

Debrief• How did you feel when points were rising?• How did you feel when the points dropped dramatically?• Which of the three game options produced the worst results in

the end?• How many groups decided to “Go for the Gold” sometime

during the game? Why did some groups make other choices?• Historical application:

• Between rounds 4 & 5: widespread speculation in the stock market in the late 1920s

• Round 6: stock market crash• Round 7: People often still bought stocks in the hopes of a quick

recovery• Round 8: There was a slight increase in the market

Speculation leads to a stock market crash

•Read 30.1 (p.383) and summarize what it says.

Tuesday, 12/3• HOT ROC• Causes of the Great Depression• Recipe for a Great Depression

• HW: Finish Great Depression Recipe

HOT ROC

• Song Analysis:• http://

www.youtube.com/watch?v=eih67rlGNhU

• Listen to the lyrics• What evidence do you hear

of life in the 1920s? • What evidence do you hear

of life in the 1930s?

Causes of the Great DepressionRead p.384-389 and summarize each of the following causes of the Great Depression:

1. A Speculative Boom in the stock market, p.384

2. A Banking Crisis that wiped out people’s savings, p.385

3. Overproduction of goods, p.386

4. A widening gap between rich and poor, p.386-387

5. Underconsumption, p.387

6. Government decides to keep a tight money supply, p.388

7. Tariffs, p.389

Causes of the Great Depression

•Review key ideas from Ch. 30•New Vocab: Tariff

Hidden Economic Problems in the 1920s

• Americans buy goods on credit• Debt (1921-1929: personal debt doubles from 3.1 billion

to 6.9 billion)

• Americans buy stock!• Buying on Margin (speculation)

• Overproduction of goods• Underconsumption• Widening gap between rich & poor

• Why was this a problem

Timeline1929• October - The stock market crash

"Any lack of confidence in the economic future or the basic strength of business in the United States is foolish."--President Herbert Hoover

1930• March - More than 3.2 million people are unemployed • President Hoover remained optimistic stating that:

"all the evidences indicate that the worst effects of the crash upon unemployment will have passed during the next sixty days.“

1931• February - "Food riots" begin to break out in parts of the country.

People smashed the windows grocery markets and made off with the food.

• Resentment of "foreign" workers increases along with unemployment rolls.

Federal Reserve System (p.388)

• Federal Reserve is a government agency started by Woodrow Wilson (p.237) to support and regulate banks.

• It can set interest rates that banks use with their customers. • Interest is the additional money you owe the bank when you borrow. • Low interest rates = lots of people borrowing• High interest rates = not many people borrowing

• Interest rates were low in the 1920s, but then raised in 1931. Why was this a bad idea?

Government Actions Make Situation Worse• President Herbert Hoover’s good intentions backfire• Laissez-faire business policies by

Republicans • were supposed to let business increase• Instead it allows speculation like buying on

margin to get out of control

• The Federal Reserve System• tightened the money supply to prevent inflation• Instead there is not enough money in the

economy so it shuts down

• High tariffs (Hawley-Smoot Tariff Act, 1930)• Supposed to protect American businesses• Instead it starts a trade war that makes it harder

for American businesses to sell goods overseas

Big Government vs. Big Business

•Did President Hoover respond to the economic crisis using a Big Government or Big Business solution?

•What were specific steps that he did to help banks and businesses?

•What might have been a Big Government solution to the economic crisis?

Sugar Cookies• PREP TIME: 30 Min • COOK TIME: 8 Min • SERVES/MAKES: 3 dozen

INGREDIENTS• 1/2 cup butter • 1 cup vegetable oil • 2 cup white sugar • 2 eggs • Dash of vanilla extract • 4 cups all-purpose flour • 1 teaspoon baking soda • 1 teaspoon cream of tartar • Sprinkle of salt

DIRECTIONS• In a large bowl, mix together the

butter, oil, and white sugar.• Beat in the eggs, one at a time

then stir in the vanilla. Combine the flour, baking soda, cream of tartar and salt; stir into the sugar mixture until just blended. Cover and chill dough for at least 3 hours or overnight.

• Preheat oven to 350 degrees F. Grease cookie sheets. Roll the chilled dough into walnut sized balls. Place them 2 inches apart onto the cookie sheets.

• Bake for 8 to 10 minutes in the preheated oven. Enjoy!

Recipe for a Depression: You will create a “recipe” that contributed to the Great Depression.

• Ex…• PREP TIME: ___ Years• COOK TIME: ___

Months/Years• SERVES/MAKES: _____

INGREDIENTS:

DIRECTIONS• In a large country, mix together

___________.• Combine the ___________

• Preheat stock market by buying on margin to an overinflated value _______

• • Bake for ____________. • Enjoy!

“Ingredients” to include

1. A Speculative Boom in the stock market, p.384

2. A Banking Crisis that wiped out people’s savings, p.385

3. Overproduction of goods, p.386

4. A widening gap between rich and poor, p.386-387

5. Underconsumption, p.387

6. Tight money supply, p.388

7. Tariffs, p.389

Block Day, 12/4-12/5• HOT ROC• Government Responses to the Great Depression• T-Chart• Bonus Army activity• FDR’s New Deal• 1929 vs. 2008

• HW: Read and Cornell Notes on p.426-427

HOT ROC• What should the government do when the economy is

struggling?• Deficit Spending?• Laissez-Faire?• Which of the ideological beliefs in 31.2 is closest to your answer?

• King Corn• Start Time: 1:11:00- 1:14:12• http://

www.youtube.com/watch?v=nvMxIEgbsIo&feature=watch-now-button&wide=1&oref=http%3A%2F%2Fwww.youtube.com%2Fmovie%3Fv%3DnvMxIEgbsIo%26feature%3Dmv_sr&has_verified=1

• Fact Sheet: http://www.nffc.net/Learn/Fact%20Sheets/King%20Corn%20Fact%20Sheet.pdf

How bad was the Depression?

• Between 1929 and 1933, 100,000 businesses failed

• Corporate profits fell from $10 billion to $1 billon

• Between 1929 and 1933, over 6000 banks failed—2.5 billion lost in savings

• By 1933, 13 million workers were unemployed (25% of the work force) and many were underemployed

• Malnutrition increased, as did tuberculosis, typhoid and dysentery

• Add unemployment to your glossary

Election of 1928• Hoover, a Republican, won with a landslide victory.• Booming economy

Herbert Hoover: Background info • Son of a blacksmith• Grew up in Iowa. • Parents died when Hoover was

young • Did not attend high school but

attended night school• Entered Stanford in the University’s

first class• Became a millionaire

"My boyhood ambition was to be able to earn my own living, without the help of anybody, anywhere.”

- Herbert Hoover

• How could Hoover’s background have possibly influenced his response to the Great Depression?

Herbert Hoover’s Beliefs

• Believed in self-reliance,

rugged individualism, and

hard work

• Any government help

would encourage

people’s dependence on

handouts

• Private charities should

help

Government responses to the Depression:Hoover’s Big Business vs. FDR’s Big Government

Hoover’s Responses to the Great Depression (p.396 & 397)

FDR’s Responses to the Great Depression (p. 397-399)

1.

2.

3.

1.

2.

3.

Vocabulary terms

•Add Conservative, Deficit and Liberal to your glossary

FDR Launches the New Deal’s First Hundred Days• Read over page 398• What 2 programs do you think could most help the US in

1933?• What 2 programs do you think could help the least?• Why?

New Vocab: Which approach do you think is best for the economy?

• Supply Side Economics

• The theory that economic growth depends on increasing the supply of goods and services through tax cuts; also known as trickle down economics

• Demand Side Economics

• The theory that economic growth comes from government spending and regulation of the economy; also known as Keynesian economics

Bonus Army activity• Read and discuss Hoover’s response to the Bonus Army

Responses to the Economic Collapse: 1929 and 2008

What are the similarities between the economic decline of 1929 and 2008?

1929

• Heavy borrowing• Corruption• Unrealistic margins• Falling real-estate prices• Vastly overvalued stocks• Bailout: GM’s Durant,

Rockefeller, Lamont• Emergency spending

programs: New Deal

2008

• Heavy Borrowing• Corruption• Un-backed credit default

swaps• Plummeting real-estate prices• Vastly overvalued stocks• Bailout: $700 billion

government, Buffett • Emergency spending

programs: American Reinvestment and Recovery Act

HOT ROC: What are the differences between the economic decline of 1929 and 2008?

1929

• Government’s involvement in the economy: 3%

• Governments did little to directly intervene

• Massive bank failures: 40-50%

• Unemployment: 25%

2008

• Government’s involvement in the economy: 20%

• Governments all over the world rushed to prevent a total meltdown

• Few bank failures: 0.6%• Unemployment: 9%

Friday, 12/6• HOT ROC: Vocab Card quiz• The Century

Review: The Century Stormy Weather

• http://www.youtube.com/watch?v=Wil1ePlT1xs&feature=related