What Caused the Great Depression? Grade 10

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1 History Ohio Standards Connection: Benchmark F Identify major historical patterns in the domestic affairs of the United States during the 20 th century and explain their significance. Indicator 9 Analyze the major political, economic and social developments of the 1920s including: a. The Red Scare; b. Women s right to vote; c. African-American migrations from the South to the North; d. Immigration restrictions, nativism, race riots and the reemergence of the Ku Klux Klan; e. The Roaring Twenties and the Harlem Renaissance; f. Stock market speculation and the stock market crash of Indicator 10 Analyze the causes and consequences of major political, economic and social developments of the 1930s with emphasis on: a. The Great Depression; b. The Dust Bowl; c. The New Deal. Lesson Summary: In this lesson, students will analyze the many causes of major political, economic and social developments during the 1920s and 1930s with emphasis on the Great Depression. Students will also get a sense of the despair and desperation felt by United States citizens during these difficult times. Estimated Duration: Three hours and 20 minutes Commentary: The Great Depression is a singular event in the history of the United States. One reviewer noted that it is important for students to understand that while there are constant fluctuations in the typical business cycle, the circumstances surrounding the Great Depression went beyond the ordinary. Pre-Assessment: Show students photographs from the 1920s and the 1930s. For example, share a photograph of the activity on Wall Street during the 1920s. Then, show students a photograph of a man in a pin-striped suit selling apples on the street during the 1930s. Have the students write a brief explanation of what they believe are the two most important reasons behind the changed conditions shown in the photographs. Scoring Guidelines: Review the student responses to determine the depth and breadth of understanding related to the causes of the Great Depression. Use this information to determine the content emphasis for the lesson. Post-Assessment: Distribute Attachment B, Post-Assessment. After a group discussion of the task, have students write a one- to two-page paper on five factors they think contributed to the onset of the Great Depression. Explanation of and support for each factor must be included. 1

2 Scoring Guidelines: Students will receive two points for each accurate explanation listed on Attachment C, Post Assessment Sample Answers, OR one point for each explanation that is partially correct. Instructional Procedures: Day One 1. Conduct the pre-assessment activity and discuss. 2. Provide students with a brief introduction to the idea of business cycles or the expansion and contraction of the economy. 3. Have students read the relevant section(s) of the textbook as homework. Tell them to read for information related to the causes of the Great Depression and how it differed from normal recessions in the business cycle. Day Two 4. Distribute Attachment A, Exploration Graphic Organizer, and explain that the students are to take notes on each section of the chart as the lesson proceeds. 5. Ask a series of questions to elicit information about the causes of the Great Depression, such as: What was happening with international trade at this time? How was the manufacturing industry faring? What was happening in agriculture? How did the banking industry react at this time? As students share what they read for homework, help them make notes and categorize the information under the headings on Attachment A. If the textbook does not address one of the areas listed on Attachment A or has insufficient information, provide supplemental information. Use Attachment C, Post-Assessment Sample Answers, to provide commentary. Day Three 6. Continue questioning students and help them finish completing Attachment A. Have students check their notes and answer any questions. Summarize points listed for each section of the chart. 7. Select excerpts from various historical fiction and non-fiction works about the Great Depression that relate to the causes of the Depression outline in the completed Attachment A and that show a sense of the despair and desperation of the times. Read the excerpts to the class. 8. Display four Depression-era photographs. 9. Tell students to analyze the photos and write a paragraph describing their general mood. 10. Have students choose one person from the photos and write a one-page journal entry. The journal should be completed from that person s perspective and should include a heading with the person s name, location and the date. The body of the journal text should include a description of a typical day in the life of that person. 11. Give the students 20 minutes to complete this activity and have volunteers share what they wrote. 2

3 Day Four 12. Have students complete the post-assessment. Determine student achievement by using the scoring guidelines. Differentiated Instructional Support: Instruction is differentiated according to learner needs, to help all learners either meet the intent of the specified indicator(s) or, if the indicator is already met, to advance beyond the specified indicator(s). Have students compare their Attachment A graphic organizers to check for accuracy and completeness. Provide students with peer note-takers. Provide extended time for completion of Attachment A. Allow students to choose a different method of assessment (oral, presentational, etc.) Extensions: Have students find a current newspaper article that addresses one of the factors contributing to the Great Depression. Have students compare what is currently happening related to the selected factor with the conditions that led to the Great Depression. Ask students to explain why the country is, or is not, presently in a depression. Provide students with the following list of prices for common goods circa Have students use newspaper ads to compare current prices for the same goods. Sirloin steak (per pound) $0.29 Milk (per quart).10 Chicken (per pound).22 Cheese (per pound).29 Bread (20-ounce loaf).05 Tomatoes (16-ounce can).09 Potatoes (per pound).02 Oranges (per dozen).27 Bananas (per pound).07 Cornflakes (8 ounces).08 Discuss with students the role played by inflation when comparing prices from any era with today s prices. Have students compare the relative prices for two goods in the different time periods (e.g., a quart of milk costs twice as much as a 20-ounce loaf of bread in ; today a quart of milk costs relative to the cost for a 20- ounce loaf of bread). Homework Options and Home Connections: Have students read an article on a recent recession, researching the causes and government responses. Tell students to look for similarities in the causes of all recessions and compare them to the causes of the Great Depression. Have them identify developments during the 1930s that made the Depression unique in American history. 3

4 Interdisciplinary Connections: English Language Arts Have students read poetry about the Great Depression and do journal-writing on the feelings portrayed in the poem(s). Fine Arts: Visual Art Have students research the Depression era photographs of Dorothea Lange, present the subjects of her photography and explain how they convey a sense of the times. Materials and Resources: The inclusion of a specific resource in any lesson formulated by the Ohio Department of Education should not be interpreted as an endorsement of that particular resource, or any of its contents, by the Ohio Department of Education. The Ohio Department of Education does not endorse any particular resource. The Web addresses listed are for a given site s main page, therefore, it may be necessary to search within that site to find the specific information required for a given lesson. Please note that information published on the Internet changes over time, therefore the links provided may no longer contain the specific information related to a given lesson. Teachers are advised to preview all sites before using them with students. For the teacher: Photographs of the 1920s and 1930s, literature selections on the Great Depression, computer, access to Internet. For the students: Writing supplies, textbook. Vocabulary: Great Depression credit speculation stock exchange buying on margin Black Tuesday Dow Jones Industrial Average (Dow) trade policy regulatory policy monetary policy fiscal policy Technology Connections: Photographs may be obtained from Library of Congress, American Memory Website: 4

5 Research Connections: Marzano, R. et al. Classroom Instruction that Works: Research-Based Strategies for Increasing Student Achievement, Alexandria, VA: Association for Supervision and Curriculum Development, Note taking is a powerful skill that helps students identify important aspects of what they are learning. General Tips: For an alternative perspective on this era s events, discuss the Black Wall Street of the time, the Greenwood District of Tulsa, OK. All students can benefit from seeing prosperity in various communities. Attachments: Attachment A, Exploration Graphic Organizer Attachment B, Post-Assessment Attachment C, Post-Assessment Sample Answers 5

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7 Attachment B Post-Assessment Prompt Directions : Examine the list below of related factors that helped lead the country into the Great Depression. Choose five of the factors and write a one- to two-page paper detailing the role of each one in pushing the country towards the Great Depression. Support your explanation for each factor. Related Factors: An old and decaying industrial base; The overexpansion of farm production; The availability of easy credit; Unequal distribution of income; Hoarding of money; Stock market speculation and buying on margin; Bank failures; Monetary and fiscal policies; Trade and regulatory policies. 7

8 Attachment C Post-Assessment Sample Answers An old and decaying industrial base: Outmoded equipment made industries less competitive, leading to reduced sales and increased unemployment. The unemployed were unable to spend money which further reduced demand for goods. The overexpansion of farm production: Even as the wartime market for American farm production disappeared, farmers maintained production levels. They produced more than they could sell, prices for farm goods fell, and farmers found themselves unable to pay debts. As a result, they cut back on purchases and investments. The availability of easy credit: Creditors made loans with easy terms and people increasingly purchased goods on installment plans. Investors also used credit to purchase stocks (buying on margin). As debt grew and people lost jobs, they were unable to pay off creditors and defaulted on loans. This contributed to eventual bank failures. Consumers also cut spending. When stock prices fell, stockholders who bought on margin were unable pay off brokers. Unequal distribution of income: A small percentage of Americans received most of the nation s income during the 1920s. Industrial workers and farmers had little money. This kept overall consumer demand low and provided no incentive for business expansion. Hoarding of money: Individuals mistrusted the banks, withdrew their money from accounts and liquidated their assets. The hoarding of money caused a constriction of the available money supply, causing interest rates to increase, and stifling business expansion. Stock market speculation and buying on margin: Throughout the 1920s, America s confidence was high and many people began to increasingly invest in the stock market. The market on the New York Stock Exchange began an unprecedented rise in By September 3, 1929 the market reached a record high of 381 points on the Dow. Then the decline began. Many did not think it would last, but on October 24, panic selling began as 12.8 million shares changed hands. Then came Black Tuesday, October 29, The market plummeted. Millions of dollars were lost. Many who had bought on margin (credit) were expected to pay back debts with money they did not have because the stocks they used to secure the loans were worthless. 8

9 Attachment C (continued) Post-Assessment Sample Answers Bank failures: Banks that had invested heavily in the stock market and real estate lost their depositors money. A panic started as people lined up at the banks to get their money. Unfortunately for many, the money was not there. Monetary and fiscal policies Monetary and fiscal policies of the federal government aggravated problematic economic conditions during the 1920s. The Federal Reserve kept interest rates low and encouraged borrowing (monetary policy). Taxes levied by the federal government perpetuated the unequal distribution of wealth (fiscal policy). Trade and regulatory policies Trade and regulatory policies of the federal government also contributed to the problematic economic conditions during the 1920s. High U.S. tariffs not only made foreign goods more expensive, but also encouraged retaliation by foreign countries. As foreign tariff walls were erected, there were reduced sales of American goods overseas (trade policy). The federal government failed to curb unfair business practices and stock market speculation. This contributed to business failures and the stock market crash of 1929 (regulatory policy). 9