Identify principal causes of the Great Depression; analyze causes including a decline in worldwide trade, the stock market crash, and bank failures; understand the legacy of the Depression in American society.

In October 1929, the stock market collapsed, plummeting the American economy into freefall. The boom of nascent industries such as radio had lured many into investing in the market; when the crash occurred, people were unprepared and unprotected. Additional factors were at work as well. The 1920s U.S. banking system, like the securities industry, was inadequately regulated. Nonexistent supervision of small community banks allowed poor lending practices that made banks unable to provide depositor funds on demand. Such scenarios led to panic, depositor runs on banks, and eventually, bank failure. Additionally, agricultural depression persisted throughout the 1920s. Wartime growth had compelled many farmers to invest in acreage or new mechanized equipment. As demand for their products declined, farmers found themselves with surpluses and high financial obligations. With national morale in decline, consumers spent less money and corporations laid off workers, contributing to the vulnerable economic climate.

• CA  11.6: 1-3 Historical Interpretation: 2
• TX  113.32(13): a-c
• FL  SS.A.5.4: 4
• NCSS  VII(HS): d

2 class periods

• Activity Sheet, Causes of America’s Great Depression
• Timeline, Life in the United States, 1920-1939 
• Graphic Organizer, Main Idea and Details Chart
• Research Report Rubric

Use the instructions below to guide students in writing a Research Report.

What were the causes of the Great Depression?

Cause and Effect Students will write a Research Report in which they explore the factors leading to the Great Depression in America. Students will research topics related to the rise and decline of the stock market, bank failure, and agricultural depression.

Have students research these topics using the provided links. Encourage them to use the suggested graphic organizer as they read the articles.

The introduction of the tractor led to increased efficiency in agricultural production.

To start students thinking about factors that led to the Great Depression, have them examine the photograph.

Key questions students should answer are:

• What factors might have caused farmers to purchase new mechanized equipment, such as the tractor?
• How could the widespread purchase of such equipment contribute to depression in the agricultural community?

Distribute the Student Activity sheet. Tell students that they will research the following factors associated with the causes of the Great Depression.

• 1920s Income Disparities and Poverty
• Postwar Agricultural Slump
• Mechanized Farming
• Natural Disasters
• Bank Failure
• Lure of New Technologies: RCA
• Stock Market Crash
• President Hoover’s Response
• Daily Life During the Depression

Remind students that their reports should consider the interrelatedness of each of these topics, elaborating on how the this led to economic decline and ultimately, the Great Depression.

Use the Research Report Rubric to assess students’ performance.

Have students reflect on their performance and use the list of expectations to judge how well they met the criteria

Ask students: Which factor was most instrumental in bringing about the Great Depression?

Newspaper Article Have students use Daily Life through History to conduct research and write a Depression-era newspaper article detailing the impact of the crisis on a fictional rural community.

Critical Thinking: APPLY