SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
LESSON 2
The Great Depression
OBJECTIVES
By the end of this lesson, the student will be able to:
 Explain how the diagram The Business Cycle represents the economy.
 Identify the causes of the Great Depression.
 Describe the policies that President Hoover enacted to solve the problems of the Great Depression.
 Describe the policies that President Roosevelt enacted to solve the problems of the Great Depression.
 Evaluate the effectiveness of President Roosevelt’s New Deal legislation in solving the problems of the
Great Depression.
CLASSROOM SUPPLIES NEEDED
Depending on what content and which activities are provided, some to all of the items below will be needed.
 Whiteboard and dry erase markers or flipchart paper and markers
LESSON RESOURCES
Depending on what content and which activities are provided, some to all of the items below will be needed.
Pre-Work For Students To Read Before Class
 Handout 1 - What Are The Causes of the Great Depression?
 Handout 2 - What Caused the Depression in 1929?
Pre-Work for Students to View Before Class
n/a
Handout to Provide Students In Class
 Handout 3 - Why Was the Fair Labor Standards Act Created?
 Handout 4 – Pros and Cons of New Deal Legislation
Online Videos Students Will Watch In Class
n/a
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
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SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
LESSON 2
The Great Depression
KEY VOCABULARY AND IMPORTANT CONCEPTS
 Business Cycle
 Peak
 Depression
 Expansion
 Recession
 Great Depression
 Contraction
 Trough
 Laissez-faire
Economics
STUDENT PRE-WORK FOR THIS LESSON
Directions
1. Students are to read two articles.
Resource
 Handout 1 - What Are The Causes of the Great Depression?
 Handout 2 - What Caused the Depression in 1929?
Class Preparation
Students will use information presented in the handouts to prepare a group assignment in class.
ANTICIPATORY SET FOR THE LESSON (5 MINUTES)
Mode
Topic
Teacher Question
Class Discussion
Teacher asks students “How does an understanding of the Business Cycle
help you make better decisions about your current and future plans?”
Students’ answers should reflect their knowledge of the relationship between
the Business Cycle and the economy.
The phases of the Business Cycle provide information on whether or not the
economy is growing. When individuals understand the current state of the
economy, they can make better decisions about their current and future
plans. During the Great Recession, many college students decided to
continue in school because the job outlook was poor. Individuals in the
workforce postponed looking for other employment opportunities. Many
seniors postponed retirement for a few years because of their financial
concerns.
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
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SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
LESSON 2
The Great Depression
LESSON CONTENT AND ACTIVITIES: THE PHASES OF THE BUSINESS CYCLE (5 MINUTES)
Mode
Topic
Teacher Lecture
Class Discussion
The Phases of The Business Cycle
Teacher shows the graph of the Business Cycle and identifies each phase.
Teacher tells students to look at the names given to the various phases of the
Business Cycle. Teacher asks students to speculate on the kind of economic
activity that occurs at each phase.
The discussion should include the following information:
Peak -The peak phase represents the highest level of economic growth. The
unemployment rate declines to its lowest level. Gross Domestic Product
(GDP) increases to its highest level. A peak is followed by a decline in
economic growth.
Contraction - During the contraction phase economic growth begins to
decline. Businesses are producing less goods and services. This is reflected in
decreasing GDP numbers. The unemployment rate increases as businesses
begin to lay off workers.
Trough - The trough is the lowest point of the business cycle. It is a very deep
recession. The unemployment rate is high. The GDP numbers decline as the
demand for goods and services declines significantly.
Expansion- When the economy begins to grow, economists look for signs that
the trough has come to an end. The demand and supply of goods and
services increase. GDP numbers increase. Businesses begin to hire
employees. The unemployment rate decreases.
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
Page 3
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
LESSON 2
The Great Depression
LESSON CONTENT AND ACTIVITIES: THE CAUSES OF THE GREAT DEPRESSION (30 MINUTES)
Mode
Topic
Teacher Lecture
The Great Depression
Teacher Reviews
Graphic Organizer
The teacher defines the Great Depression.
The Causes of the Great Depression
Teacher will review the causes of the Great Depression as indicated by the
graphic organizer.
Teacher Provides
Instructions
Teacher tells students that these causes were identified in the articles that
they read for pre-work. They will use the information to prepare a group
assignment.
Causes of The Great Depression
Teacher organizes students into groups of four.
Teacher assigns each group a cause of the Great Depression as depicted in
graphic organizer in the Power-Point.
a. Group 1-Stock Speculation and Stock Market Crash
b. Group-2-Credit and Debt
c. Group 3-Supply/Demand and Agricultural Issues
d. Group 4-International Problems and World War I
Teacher instructs students to review information from both articles.
a. Handout 1-What Are The Causes of the Great Depression?
b. Handout 2- What Caused the Depression in 1929?
Teacher instructs students to use both articles to gather information about
the “cause” they have been assigned.
Teacher tells students that they may include additional information that they
have read or researched.
Teacher instructs students to work together to identify the information that
they want to present to the class.
Teacher instructs students to use the whiteboard and dry erase markers to
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
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SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
LESSON 2
The Great Depression
LESSON CONTENT AND ACTIVITIES: THE CAUSES OF THE GREAT DEPRESSION (30 MINUTES)
Mode
Topic
develop their presentations.
Teacher tells students that the whole group may present the information, or
they may choose a spokesperson to present for the group. Each group has
three minutes to present their information.
Student Activity
Students’ presentations should include the following information:
Stock Speculation and Stock Market Crash
Wealthy Americans invested their money in the Stock Market. Stock prices
rose dramatically, until the summer of 1929. As prices declined, investors
began to sell their stocks. Eventually, no one bought stocks, and when the
market crashed, investors were left with stocks that they had purchased at
inflated prices.
Credit and Debt
Americans purchased goods and services on credit in the 1920s. Because
wages for workers only rose 8 percent, many of them created a lot of debt.
Many workers decreased their spending habits before the Stock Market
crashed. After the crash, people lost jobs and could not pay their debts.
Supply/Demand and Agricultural Issues
During World War I, American farmers grew crops for European nations.
After the war, European nations produced their own crops, which decreased
the demand for American crops. American farmers had to cut their supply,
and lay off employees. Many farmers lost their farms and livelihood due to
the Dust Bowl, or the severe drought that plagued the United States in the
1930s.
International Problems and World War I
When the Stock Market crashed, America could not continue to loan money
to European nations to help them rebuild their post-World War I economies.
The United States also levied a protectionist tariff on imported goods. When
European products did not sell in the United States, European nations could
not pay back money owed to the United States.
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
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SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
LESSON 2
The Great Depression
LESSON CONTENT AND ACTIVITIES: THE CAUSES OF THE GREAT DEPRESSION (30 MINUTES)
Mode
Topic
LESSON CONTENT AND ACTIVITIES: LIFE DURING THE GREAT DEPRESSION (5 MINUTES)
Mode
Topic
Teacher Lecture
Class Discussion
Life During The Great Depression: Decline
Teacher Lecture
Class Discussion
Life During The Great Depression: Prosperity
Teacher and students discuss the economic impact of the Great Depression.
The discussion includes the rise in unemployment, the failure of the banks,
the development of “Hoovervilles”, the development of gangs and
homelessness.
Teacher and students discuss the businesses that prospered during the Great
Depression. The following businesses are included: Kellogg’s Cereal, R J
Reynolds, Chevrolet, and movie houses.
LESSON CONTENT AND ACTIVITIES: PRESIDENT HOOVER’S ADMINISTRATION (10 Minutes)
Mode
Topic
Teacher Lecture
Class Discussion
President Hoover and The Great Depression
Teacher Lecture
Class Discussion
Teacher describes the initial steps that President Hoover took to solve the
problems that occurred during the Great Depression.
President Hoover and The Great Depression
The teacher continues to describe the legislation that President Hoover and
the Congress passed to solve the problems that occurred during the Great
Depression. The discussion includes appropriations for public works projects,
the provisions of the Smoot Hawley Tariff Act, the Revenue Act, and the
function of the Reconstruction Finance Corporation.
Teacher discusses the reasons for President Hoover’s defeat in the 1932
election.
LESSON AND CONTENT ACTIVITIES: PRESIDENT ROOSEVELT’S ADMINISTRATION (30 MINUTES)
Mode
Topic
Teacher Lecture
Economic Conditions In 1933
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
Page 6
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
LESSON 2
The Great Depression
Class Discussion
Teacher and students discuss the economic conditions that President
Roosevelt faced when he took office in 1933. Included in discussion are the
high unemployment rate, farm foreclosures, and bank failures.
Teacher Lecture
Class Discussion
President Roosevelt’s New Deal Administration
1933
Teacher and students discuss the initial steps that President Roosevelt took
to solve the problems that occurred during the Great Depression. The
discussion includes the provisions of the Emergency Banking Act, the function
of the Tennessee Valley Authority, and the function of the Federal Deposit
Insurance Corporation (FDIC).
Teacher Lecture
Class Discussion
President Roosevelt’s New Deal Administration
1934
Teacher and students continue to discuss legislation passed by President
Roosevelt and the Congress, to address the problems that occurred during
the Great Depression. The discussion includes the creation of the Securities
and Exchange Commission and its purpose, the function of the Federal
Housing Administration, and the provisions of the Reciprocal Tariff Act.
Teacher Lecture
Class Discussion
President Roosevelt’s New Deal Administration
1935
Teacher and students continue to discuss the legislation passed by President
Roosevelt and the Congress to address the problems that occurred during the
Great Depression. The discussion includes the provisions of the Social
Security Act, the function of the Work Progress Administration, and the
provisions of the Wagner Act.
Teacher Lecture
Class Discussion
President Roosevelt’s New Deal Administration
1937
Teacher and students continue to discuss the legislation passed by President
Roosevelt and the Congress to address the problems that occurred during the
Great Depression.
The discussion includes the provisions of the Fair Labor Standards Act, and
the function of the United States Housing Authority.
Pros and Cons of New Deal Legislation
Teacher directs students to choose one or more of the laws enacted by
Congress under President Roosevelt, and develop an argument that either
supports the policy or opposes the policy.
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
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SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
Student Activity
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
LESSON 2
The Great Depression
Students may use Handout 3- Why Was the Fair Labor Standards Act
Created?, to develop their arguments.
Students may research additional information on the policy. Students may
use information from the lecture notes, and any readings that the teacher
has provided.
Students’ arguments should include a summary of the legislation, and the
problems that it attempted to solve.
Students will use Handout 4- Pros and Cons of New Deal to list information
that they need to make their arguments to the class.
Students should include the following information in their arguments:
The purpose of The Fair Labor Standards Act was to provide for better
working conditions, and a better salary for employees. The law established a
40 hour work week, a minimum wage of $.40 per hour, and time-and-a half
overtime pay. The bill also restricted child labor.
Students who support the legislation, could use the same arguments that
those who supported the bill in the 1930s used. Supporters argued that a
shorter workday led to increased employment, because it was cheaper to pay
the hourly rate to more employees, than pay the over-time rate to fewer
employees. Students could also argue that the bill eliminates some of the
dangerous working conditions, and eliminated child labor, which were
positive results.
Students who oppose the legislation, could cite the fact that the Supreme
Court had already ruled laws providing for a minimum wage,
unconstitutional. Students could argue that employers were providing much
needed jobs for displaced farmers and immigrants. Students could argue that
the jobs that employers provided, kept the unemployment rate at a low level
of 3.3 percent from 1923-1929. Students could also argue that the minimum
wage requirement would decrease profits, and prevent employers from
hiring additional workers.
President Roosevelt’s New Deal Administration
1935-1940
Teacher describes economic conditions as measured by the unemployment
rate, the national debt, and GNP.
LESSON ASSESSMENT AND STUDENT LEARNING EVALUATION (15 MINUTES)
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
Page 8
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Key Economic Events That Have Shaped American
Government and Policy
Mode
Topic
Student Activity
Assessment/Evaluation
LESSON 2
The Great Depression
Write a short answer response that describes the degree of effectiveness of
Roosevelt’s policies in solving the economic crisis of the Great Depression.
Use information from the lecture, class discussions, and the articles that have
been provided, to support the main ideas of your argument.
President Roosevelt’s policies helped to alleviate some of the problems
caused by the Great Depression.
When President Roosevelt took office in 1933, the economic outlook was
dismal. Twenty-five percent (25%) of Americans were unemployed. Farmers
lost half of their farms to bank foreclosures. Forty percent (40%) of the banks
failed. The national debt was forty percent (40%) of GNP.
President Roosevelt took several steps to provide relief to persons who lost
the jobs, to help the economy recover, and to reform the systems that led to
the Great Depression.
Programs like the Tennessee Valley Authority, and the Works Progress
Administration, employed large numbers of people for public works projects.
Laws such as the Reciprocal Tariff Act allowed President Roosevelt to
negotiate tariffs with foreign nations, and increase trade.
The Emergency Banking Act stabilized the banks so that only a few banks
failed after 1933.
The Federal Deposit Insurance Corporation insured deposits up to $2500.00,
which provided some protection for savings.
The Social Security Act set up a pension system for the elderly, which was
funded by workers, and guaranteed by the federal government.
The economy improved under the leadership of President Roosevelt.
Industrial production was fifty-five (55%) higher in 1935, than it was in 1933.
The unemployment rate declined from nineteen percent (19%) in 1938, to
17.2 % in 1939, and 14.6% in 1940. The Gross National Product was fifty eight
(58%) higher in 1940 than it was in 1932.
Despite these improvements, the policies enacted by President Roosevelt
under the New Deal, did not end the Great Depression. World War II, which
led to increased industrial output of military equipment, finally ended the
Great Depression.
Economics > Key Economic Events That Have Shaped American Government and Policy > The Great Depression
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