Economic Collapse Sequence

This sequence immerses students in the economic mechanisms that led to the Great Depression, focusing on speculation, market failure, banking panics, and global contraction. Students move beyond memorizing dates to analyzing systemic failures through simulations, primary source analysis, and causal mapping.

Speculation and Bubbles

Students participate in a stock market simulation to understand 'buying on margin' and the psychology of a bubble during the late 1920s. They analyze how unregulated speculation and consumer debt created a fragile economic environment.

The Big Crash

Students analyze primary source newspaper headlines and data charts from October 1929 to understand the mechanics of the crash. They examine the shift from economic optimism to widespread panic and its immediate impact on the financial sector.

Broken Banks

This lesson explores the mechanics of bank runs and the consequences of a lack of deposit insurance. Students diagram how the market crash led to a systemic failure of the banking industry and the loss of personal savings.

Global Dominoes

Students examine how the Great Depression spread globally through trade policies and the recall of international loans. They analyze the impact of the Hawley-Smoot Tariff and the interconnectedness of the post-WWI global economy.

The Final Storm

Students synthesize their learning by creating a comprehensive flowchart of the Depression's causes, including overproduction and wealth inequality. They develop a final argument regarding the inevitability of the economic collapse.