Causes of the Great Depression - Experience Summary

Students create a KW chart about the stock market. Then they identify three causes of the Great Depression. Next they learn some basic economic terms and analyze the role of the Federal Reserve Board in the stock market crash of 1929. Finally they choose a current public event and explain the role of public confidence and panic during national events.

Objectives:

  • Identify the causes of the Great Depression.
  • Explain the stock market crash of 1929.

Scene 1 — Engage

Student Activity

Students read a brief introduction to Black Thursday and how it signaled the beginning of the Great Depression, then review the lesson objectives. They contribute to a class KW chart by posting something they already know about the stock market or a question they have about it.

Teacher Moves

Use the KW chart to gauge students’ prior knowledge of the stock market and address misconceptions before moving on. If time allows, revisit the chart later in the lesson to help students answer any remaining questions.

Scene 2 — Explore

Student Activity

Students examine a description of consumerism, overproduction, and stock market speculation in the 1920s, then learn about additional causes of the Great Depression such as high tariffs and bank failures. They watch Stock Market Crash of 1929 and read The Stock Market Crash of 1929 (section “The Great Crash”) to deepen their understanding of how these factors contributed to the crash and ensuing crisis. Using this information, they complete a graphic organizer to show at least three causes of the Great Depression and their relationship to the Great Depression itself.

Teacher Moves

Summarize the major causes of the Great Depression highlighted in the texts and media, including consumerism and overproduction, low interest rates, and public panic. Allow time for student questions and clarify how these causes interacted to trigger and deepen the economic downturn.

Scene 3 — Explain

Student Activity

Students read explanations of key economic concepts such as money supply, bank reserves, excess reserves, loans, interest, and monetary policy, and how the Federal Reserve Board influences the economy through interest rates and reserve requirements. They learn how the Fed’s actions in the 1920s and 1929—lowering interest rates and reserve requirements, then later raising interest rates—affected speculation, the money supply, and the onset of a global recession. Students then respond to a class wall prompt explaining the role of the Federal Reserve Board in the economic crisis of the Great Depression.

Teacher Moves

Use the explanation of the Fed’s actions before and during the Great Depression to clarify how monetary policy decisions contributed to the crisis. Reference students’ wall responses as you highlight how low interest rates and reduced reserve requirements fueled speculation, and how later rate hikes helped trigger a global recession.

Scene 4 — Elaborate

Student Activity

Students read about how fear, panic, and loss of confidence in banks intensified the Great Depression, then consider historical examples of public panic in U.S. history. They choose a current public issue (such as the COVID-19 pandemic, the 2020 presidential election, mass shootings, or another issue) and post a brief description of the issue on a class wall, explaining the importance of public confidence in the government’s handling of it and the role of panic in shaping events.

Teacher Moves

Select and share interesting or exemplary student responses with the class to prompt discussion about how public confidence and panic influence government actions and the course of national events.

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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