causes of the great depression worksheet

Lemon

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04-02-2025

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The Great Depression, a period of unprecedented economic hardship lasting from 1929 to the late 1930s, profoundly impacted the global landscape. Understanding its causes requires exploring a complex interplay of economic, social, and political factors. This worksheet will guide you through the key contributing elements, encouraging deeper research and analysis.

Section 1: The Stock Market Crash of 1929 – A Trigger, Not the Sole Cause

The stock market crash of October 1929, often cited as the start of the Great Depression, was a dramatic event that wiped out billions of dollars in investments. However, it was more of a catalyst than the root cause.

Worksheet Activity 1: Research and briefly explain the following contributing factors to the 1929 crash:

• Overvalued Stock Market: Why were stock prices artificially inflated in the late 1920s? Consider factors like speculation and buying on margin.
• Economic Inequality: How did the vast disparity in wealth distribution contribute to the instability of the market?
• Banking Panics: What role did the fragility of the banking system play in exacerbating the crisis?

Section 2: Beyond the Crash: Deeper Systemic Issues

The stock market crash exposed underlying weaknesses in the American and global economies. These pre-existing conditions significantly prolonged and deepened the Depression.

Worksheet Activity 2: Explore the following factors and their contribution to the Great Depression's severity and duration:

• Agricultural Depression: Explain the difficulties faced by American farmers in the 1920s. How did overproduction and falling crop prices impact the economy as a whole?
• Protectionist Trade Policies: Discuss the impact of high tariffs (like the Smoot-Hawley Tariff Act) on international trade and global economic stability. How did this contribute to a contraction of the world economy?
• The Gold Standard: Explain the gold standard and its role in limiting government responses to the economic crisis. Why did adherence to the gold standard hinder effective economic recovery measures?
• Debt and Credit: Analyze the role of excessive consumer debt and the contraction of credit in worsening the economic downturn.

Section 3: The Ripple Effect: Global Consequences

The Great Depression wasn't confined to the United States; its impact reverberated across the globe, creating widespread suffering and instability.

Worksheet Activity 3: Research and describe the effects of the Great Depression in at least two countries outside the United States. Consider factors like unemployment rates, social unrest, and governmental responses.

Section 4: Analysis and Synthesis

Worksheet Activity 4: Based on your research, synthesize your findings to answer the following questions:

• Was the stock market crash the primary cause of the Great Depression, or was it a symptom of deeper problems? Explain your reasoning.
• Which of the factors discussed above do you consider to be the most significant contributors to the Depression's severity? Justify your answer.
• What lessons can be learned from the Great Depression about economic policy, regulation, and international cooperation?

This worksheet provides a framework for understanding the complex web of causes behind the Great Depression. By engaging in thorough research and critical analysis, you'll gain a deeper appreciation of this pivotal moment in history and its lasting impact on the world. Remember to cite your sources appropriately.