The Inter-War Years and the Rise of Totalitarianism · Term 3

Economic Instability and the Wall Street Crash

Investigate the underlying economic weaknesses of the 1920s and the causes of the 1929 stock market crash.

About This Topic

The Great Depression examines the catastrophic global economic collapse that began with the 1929 Wall Street Crash. For Year 11 students, this topic is a study in the fragility of the global economy and the profound political consequences of economic failure. They will investigate how a crisis in the US financial system spread across the world, leading to mass unemployment, poverty, and the rise of extremist politics.

This unit aligns with ACARA standards regarding the inter-war years and the causes of WWII. A key focus is the impact of the Depression on Australia, which was one of the hardest-hit countries due to its reliance on exports. Students will analyze how different governments responded to the crisis, from the 'New Deal' in the US to the austerity measures in Australia. This topic comes alive when students can physically model the economic 'domino effect' through simulations and collaborative investigations.

Active Learning Ideas

Simulation Game: The Economic Domino Effect

Students represent different sectors of the economy (banks, factories, farmers, workers). As the 'crash' happens, they must see how a problem in one sector (banks) quickly leads to layoffs and business failures in all the others.

⏱ 50 min·Whole Class

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Think-Pair-Share: The Impact on Australia

Pairs analyze photos and stories of 'susso' (sustenance) camps and the 'dole' in 1930s Australia. They discuss how the Depression changed the Australian government's role in the lives of its citizens and share their thoughts.

⏱ 30 min·Pairs

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Inquiry Circle: The Rise of Extremism

Groups research how the Depression helped extremist parties (like the Nazis in Germany or the New Guard in Australia) gain support. They create a 'propaganda pitch' that these groups might have used to attract desperate people.

⏱ 45 min·Small Groups

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Watch Out for These Misconceptions

Common Misconception

The stock market crash was the only cause of the Great Depression.

What to Teach Instead

The crash was a trigger, but the underlying causes included overproduction in farming, high tariffs, and a weak banking system. Using a 'multi-causal' diagram helps students see the crash as the 'last straw' rather than the only cause.

Common Misconception

The Depression ended quickly once the government started spending money.

What to Teach Instead

The Depression lasted for a decade, and in many countries, it only truly ended with the massive increase in government spending for WWII. Peer discussion of the 'long-term' nature of the crisis helps students understand the depth of the economic damage.

Frequently Asked Questions

What caused the Great Depression?

While the 1929 Wall Street Crash was the trigger, the underlying causes included a massive gap between rich and poor, farmers producing too much food (which drove prices down), and people buying too much on credit. When the crash happened, it caused a 'panic' that led to bank failures and a total collapse in spending.

How did the Depression affect Australia?

Australia was hit very hard because it relied on selling wool and wheat to the rest of the world. When global trade collapsed, unemployment in Australia reached nearly 30%. This led to widespread poverty, the growth of 'shanty towns,' and intense political conflict over how to fix the economy.

How can active learning help students understand the Depression?

Economic concepts like 'deflation' or 'the gold standard' can be very difficult to grasp. By using simulations where students have to 'manage' a family budget or a business during a downturn, they experience the real-world impact of these abstract terms, making the history much more relatable and understandable.

What was the 'New Deal'?

The New Deal was a series of programs and laws introduced by US President Franklin D. Roosevelt to provide 'Relief, Recovery, and Reform'. It involved massive government spending on public works projects to create jobs and new regulations to prevent another stock market crash.

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