Causes of the Great Depression

When people are poverty-stricken, unemployed and desperate to meet their basic needs, it is common to find that extremist governments and ideas are able to take hold. Thus, it is no coincidence that the inter-war period saw a rise of dictatorships across Europe. The 1930's are seen as the precursor to the outbreak of World War Two. What we intend to find out is how this economic depression occurred.

Today's lesson focused on the causes of the Great Depression. We watched a movie called "The Great Depression - Part One" that explained how the stock market crash triggered the start of the greatest economic recession of the 20th century.

The movie identified the main causes of the depression as:

• Overproduction of manufactured goods and agricultural products
• Speculation and "buying on margin" on the stock market
• Protective tariffs (taxes) that made domestic products cheaper, but stalled global trade.
• The Dust Bowl - poor farming techniques worsened the drought conditions

If you missed class, it is really important that you come in and watch the 30 minute video on your own time.

HOMEWORK: Make sure that Chapter 4 preview is complete