Introduction

The time is 1933. The United States is in the throes of a depression. Over 25% of the work force is unemployed. Over 40% of the population is living in poverty. The country's wealth has gone from 89 billion in 1929 to 40 billion in 1933.

So what caused this Great Depression? In this webquest, you will explore a sampling of some of the theories of what caused the Great Depression.

The Quest

If you could pinpoint the number one cause of the Great Depression, what would it be? Why? What would come second? Third?

The Process and Resources

Each member of your group will explore one of the three perspectives listed for a single main cause of the Great Depression. You are to take one viewpoint and research it. Your group will then come back together and you will argue for why the perspective that you researched is the number one cause of the Great Depression.

Phase 1 - Background: Something for Everyone

Use the Internet information linked below to answer the basic questions of who or what caused the Great Depression and why? Be creative in exploring the information and search for more infomation using google.com if you have time or need more information.

Phase 2 - Looking Deeper from Different Perspectives

1. In your group of 3, decide who will research which viewpoint for the number one cause of the Great Depression.
2. Go to your own computer, and read the links for the viewpoint you have chosen.
3. Jot down notes and make sure you can thoroughly answer each of the questions. Prepare a statement so that you can argue why your viewpoint of the cause of the Great Depression has to be right. (You do not have to agree with it.)
4. Once the other members of your group are ready, gather back together and convince your group members that your viewpoint is the number one cause.
5. Fill out the question sheet provided after your discussion which states your groups opinion of the first, second, and third main causes of the Great Depression.
6. Go back to your computer and read the Summary of the Causes links to conclude this activity.

Keynesian Theory

Use the Internet information linked below to answer these questions specifically related to the Keynesian Theory:

1. Who was John M. Keynes?
2. What is the Keynesian theory?
3. What were the consequences of the Versailles Treaty?
4. Were there any other significant economic issues?
5. Why do the theories of Keynes prove that Keynesianism is the number one cause of the Great Depression?

• Keynesian
• A Review of Keynesian Theory - Read only the first section.
• Causes of the Great Depression - Read only 'A review of Keynesian theory'.

Stock Market Crash

Use the Internet information linked below to answer these questions specifically related to Stock Market Crash:

1. How did the stock market crash affect the average worker? the business owner? the banks?
2. What caused the market to crash?
3. Why do you believe the stock market crash is the number one cause of the Great Depression?

• America's Great Depression: An Overview - Read the section titled 'The Federal Reserve Board'.
• 1929 Stock Market Crash - Did the Stock Market Crash cause the Depression? Read from a few of the links on this site to find out more.
• Black Monday - Read about the facts of the stock market crash.

Herbert Hoover

Use the Internet information linked below to answer these questions specifically related to Herbert Hoover:

1. What is the laissez-faire ideology?
2. What is the Smoot-Hawley tariff of 1930 and how is it connected with Hoover?
3. Why do you believe Hervert Hoover is the number one cause of the Great Depression?

• America's Great Depression: An Overview - Read only the section titled 'Herber Hoover'.
• Hawley-Smoot Tariff Act - Read about this act.
• Causes and Effects of the Great Depression - Scroll down about halfway and begin reading about the role Hoover played in causing the Great Depression.

Summary of Causes

Read the information in the links below to see what are believed to be the other causes of the Great Depression.

• America's Great Depression - Causes and Cures
• Causes of the Great Depression
• Summary of the Causes of the Great Depression

Phase 3 - Debating, Discussing, and Reaching Consensus

You have each learned about a different cause of the Great Depression. Each of you must all now answer the main question as a group. You will bring a certain viewpoint to the answer: some of you will agree and others disagree. Use information, facts, opinions, etc. from the Webpages you explored to convince your group members that your viewpoint is the number one cause of the Great Depression. As a group, agree on an answer to the question that everyone in the group can live with.

Phase 4 - Real World Feedback

As you continue to relieve the 1930's for the remainder of this unit, think about the different causes of the Depression and how they relate to our economic slump of today.

 

Conclusion

The Great Depression lasted over a decade. Hundreds of thousands of Americans lost their jobs. Businesses failed and banks collapsed. Hopefully, you now have a better understanding of some of the causes of the Great Depression.