Students explore the changes in the Texas economy in the late twentieth and early twenty-first centuries, including boom-and-bust cycles. They learn about the east Texas logging boom and bust. Then they create a sequence chart showing how the boom-and-bust cycle of the oil and gas industry affected other areas of the Texas economy. Finally, they explain the advantages of a diverse economy.

Objectives:

• Explore the causes of boom-and-bust cycles in the Texas economy.
• Understand the impact of the 1980s oil bust on the banking and real estate businesses.
• Identify how the Texas economy has diversified in the early twenty-first century.

Scene 1 — Engage

Student Activity

Students are introduced to the concept of boom-and-bust cycles in the Texas economy through background text and an image of an oil boom town poster. They learn how changes in demand and new technologies can cause certain products or industries to decline, then respond to a prompt on a class wall explaining a product or business that went bust when a new product or technology replaced it and what caused that bust.

Teacher Moves

Present the lesson overview and objectives, clarifying the meaning of boom-and-bust cycles with concrete examples (such as paper maps, CDs, and VHS tapes). Encourage students to connect these examples to their own responses on the wall and prepare the class to move on once everyone has contributed.

Scene 2 — Explore

Student Activity

Students examine an image of logging in Trinity County and read about the Aldridge Sawmill and the East Texas logging boom to understand how dependence on a single resource can lead to a bust. They complete a two-column graphic organizer listing reasons for the boom and reasons for the bust of Aldridge, Texas.

Teacher Moves

Guide students in identifying key causes of the boom and bust in Aldridge, prompting them to distinguish between factors that fueled growth and those that led to decline. Check student entries in the organizer for accuracy and completeness before advancing to the next scene.

Scene 3 — Explain

Student Activity

Students read an explanation of how boom-and-bust cycles in the late twentieth-century Texas oil and gas industry affected other sectors, especially banking and real estate. They then complete a sequencing graphic organizer that begins with a 50% drop in oil prices and add subsequent steps showing job losses, unpaid mortgages, bank failures, and falling real estate values.

Teacher Moves

Clarify the chain of cause and effect linking oil prices to employment, mortgages, bank stability, and property values. Support students as they fill in the sequence chart, ensuring they place events in logical order and understand how a downturn in one major industry can ripple through the broader economy.

Scene 4 — Elaborate

Student Activity

Students view an image of the Dell Computers logo and read about how the Texas economy has diversified in the early twenty-first century, including growth in medical and high-tech industries. On a class wall, they explain how a diversified economy can help ease or eliminate boom-and-bust cycles.

Teacher Moves

Facilitate a discussion using student responses, highlighting strong examples and, if needed, simplifying the idea of diversification with the saying “Don’t put all your eggs in one basket.” Explain how a diverse economy can absorb workers from struggling industries and reduce the overall impact of busts on communities.

Scene 5 — Evaluate

Student Activity

Students complete the exit quiz by answering all the questions.

Teacher Moves

Facilitate the assessment and use student data to evaluate understanding, address misconceptions, and identify areas for growth.

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