An Inquiry into the Causes of the Great Depression

Unit inquiry question: At the conclusion of this unit, you should be able to answer this question with specific evidence to support your argument. Should we assume that periodic economic depressions are inevitable in a capitalist economy? *As a means to gauge our learning, quickly record your initial thoughts on this question.

Academic Vocabulary: I think it means… business cycle recession depression economic panic

I know it means… Business Cycle a cycle of economic activity usually consisting of recession, recovery, growth, and decline

I know it means… Recession A period of general economic decline lasting for six months or longer. A recession is marked by high unemployment, low wages, and lower consumer spending.

I know it means… Depression A severe and prolonged downturn in economic activity. An extreme recession that lasts two or more years. A depression is characterized by economic factors such as substantial increases in unemployment, a drop in available credit, diminishing output, bankruptcies, reduced trade and commerce, and sustained volatility in currency values. In times of depression, consumer confidence and investments can decrease, causing the economy to shut down.

I know it means… Economic Panic Sudden, widespread fear of economic or market collapse, leading to massive bank deposit withdrawals and/or falling stock prices.

Student Inquiry Investigate the causes of major economic depressions in American history. Identify commonalities, differences, and trends. Draw conclusions about the causes of economic depressions during the 19th century. Investigate the causes of the Great Depression. Compare your results and be prepared to explain how the Great Depression was similar to, and different from, the depressions of the past.