Historic Events

The Great Depression

Pre-Reading
A. Warm-Up Questions

Share your knowledge with your classmates.

If you don’t know an answer, take a guess!

1. What does the word “depression” mean?

Can “depression” have more than one meaning?

2. What does the word “great” mean?

Can “great” have more than one meaning?

3. When and where did the

Great Depression take place?

4. What caused the Great Depression

and how did it end?

B. Vocabulary Preview

Match up as many meanings and words as you can before you read. You
can check this exercise again after seeing the words in context on page 2.

1. optimistic a)  money that you borrowed and now owe

2. invest b)  to have the opposite effect of one’s intention or goal

3. debt c)  hopeful

4. credit d)  a period of economic decline

5. struggle e)  to give money temporarily in the hopes of a future financial increase

6. drought f)  help or comfort during a time of pain or suffering

7. GDP g)  funds (money) available for use or borrowing

8. recession h)  to have difficulty doing or accomplishing

9. backfire i)  a dry period (without rain or other precipitation)

10. relief j)  gross domestic product, an indicator of a nation’s economic wealth

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 The Great Depression
Historic Events

Reading
1. The Great Depression was the most historic period of economic “So, first of all, let
decline in the 20th century. It began in the US in 1929 and me assert my firm
affected economies worldwide throughout the 1930s.
belief that the only
2. During the “roaring ‘20s,” following World War I, Americans were
optimistic about their future. Many invested in stocks even if they
thing we have to
had to borrow money to do so. On October 29, 1929, the US stock fear is fear itself. ”
market crashed. Many investors owed more money than they had —President Franklin D. Roosevelt,
earned. International trade quickly began to fall. inauguration speech

3. US banks played a large role in the economic downturn. In the 1920s,

big American banks loaned a lot of money to foreign countries
that had debts from World War I. When these countries did not
make their payments, these banks suffered. Smaller banks also
made mistakes. They gave too much credit to everyday people,
especially farmers.

4. Many American farmers were already struggling before the

Depression. Mechanization and expansion during World War I caused
overproduction in the post-war years. Crop prices fell by as much as
60%. A decade-long drought in America’s Midwest made things much
worse in the ‘30s. Farmers in the “Dust Bowl” abandoned their land
and moved west to search for work.

5. During the worst years of the Depression, unemployment reached

25%. Not only were people not investing, they weren’t spending money
on goods and services. Many people relied on bread and soup lines to
feed their families. This had a major effect on manufacturing and trade
and resulted in mass layoffs around the world. From 1929 to 1932, the
worldwide GDP fell by 15%.

6. President Herbert Hoover was in power when the Great Depression

began. Several of his efforts to pull the US out of recession failed.
First, he tried to keep the prices of goods high. Second, he tried to
keep wages high. Lastly, he tried to prevent foreign competition.
All of these efforts backfired and hurt economies worldwide.

7. In 1932, Americans elected Franklin D. Roosevelt as president.

FDR was a rich man and an optimist, but his experimental New Deal
did not provide the relief and recovery that Americans hoped for.
It wasn’t until 1941, when America entered World War II, that the
Great Depression finally came to an end.

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 The Great Depression
Historic Events

Comprehension
A. True or False?

Read the statements below. If the statement is true,

write T beside the sentence. If the statement is false,
write F and correct the information in your notebook.

1. The Great Depression took place throughout the roaring ‘20s.

2. FDR was the president when the stock market crashed.

3. The Great Depression mainly affected the US.

4. The Dust Bowl was the name of the stock market crash.

5. Banks eventually helped pull America out of the recession.

B. Ask and Answer

Practice asking and answering the following questions with your partner.
Then write the answers in complete sentences in your notebook.

1. Why did so many Americans invest in the stock market in the ‘20s?

2. What financial error did small banks make in the ‘20s?

3. What natural disaster contributed to the Great Depression?

4. How did World War I affect farming?

5. What mistakes did President Hoover make?

6. Why did Americans vote for Franklin D. Roosevelt?

7. What was the New Deal, and was it effective?

8. How did the Great Depression come to an end?

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 The Great Depression
Historic Events

Grammar & Pronunciation

EFFECT & AFFECT

A. Reference

The words “effect” and “affect” sound similar and have similar meanings.
The important difference between these words is the word form (part
of speech). Try to spot the uses of “effect” and “affect” in the reading.
Then read the notes in the chart below.

Effect Affect

Meaning the result or influence of something to influence or produce an effect on

Word Form noun verb

When speaking slowly, the first syllable
has an /i/ sound, as in teeth), but when
Pronunciation speaking quickly and naturally, the first
syllable has a schwa sound (as in the)
because it is unstressed.
When speaking slowly, the first syllable
has an /ae/ sound (as in cat), but when
speaking quickly and naturally, the first
syllable has a schwa sound (as in the)
because it is unstressed.

The drought had devastating Missing a bill payment will

Example
effects on farmers in the ‘30s. affect your credit score.

B. Practice

Complete the sentences with the correct word.

Remember that “effect” is a noun and “affect” is a verb.

1. The drought will              both farmers and consumers.

2. The recession had a lasting              on workers in the car industry.

3. This financial decision could backfire and              your chances of getting into college.

4. The international trade law will              the GDP in nations around the world.

5. The new interest rate goes into              on Monday.

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 The Great Depression
Historic Events

Vocabulary Review
Choose the correct word from the word list
to complete each of the following questions.

1. Do you               in stocks? Word List:

2. How long can this               last? It has to rain soon! • invest
• debts
3. Is your country in a               , or is it easy to find a job right now? • drought
• recession
4. Are you feeling more               now that the recession is over? • backfire
• struggling
5. Will you pay cash, or will you use your               card?
• GDP
6. Are all of the students               with the homework? • credit
• optimistic
7. Will cold medication provide some               ? • relief

8. Did your country’s               rise or fall this year?

9. Will you pay off your               before you get married?

10. Are you worried that your decision might               ?

Discussion
1. What financial struggles do people in your country have now?
What struggles do Americans have?

2. Have you or your family members ever made a financial

(or employment) decision that backfired?
Were there any lasting effects?

3. What are good debts to have? What are bad debts to have?
What affects your credit score?

4. Should students learn about economics and banking in school?

What do they need to learn?

5. Are you optimistic about the economic future of your native country?
What about the financial future of America?

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 The Great Depression
Historic Events

Answer Key
LESSON DESCRIPTION: LEVEL: Int – High Int

Students read about a period of time in the ‘20s and ‘30s. TIME: 1.5–2 hours
They review vocabulary related to finances and discuss economics.
TAGS:  historic events, depression, the great depression,
This lesson also reviews the grammar and pronunciation of
poverty, jobs, unemployment, ‘20s, ‘30s
“effect” and “affect.”

Pre-Reading 4. F – T he Dust Bowl was the name of the dry region that was
created in the Midwest from the decade-long drought.

A. WARM-UP QUESTIONS 5. F – World War II eventually pulled America

out of the historic recession.
1. The word “depression” can mean prolonged sadness.
It can also refer to a period of economic recession (decline). B. ASK AND ANSWER
2. The word “great” can mean wonderful.
It can also mean very big or historic. 1. So many Americans invested in the stock market in the ‘20s

3. The Great Depression took place throughout because they felt optimistic about the future of America.

the ‘30s in the US and around the world. 2. Small banks loaned too much money to

4. There are a variety of theories about the causes of the Great farmers in the ‘20s. Farmers were struggling.

Depression. The stock market crash of 1929 marked the 3. A decade-long drought in America’s Midwest

beginning of it. The people’s sense of optimism and the poor (the Dust Bowl) contributed to the Great Depression.

decisions made by banks and investors in the ‘20s helped 4. Mechanization and expansion during the

create it. It was prolonged by poor post-war decisions made war caused overproduction and a dramatic

by the US government and other world leaders. The Great drop in crop prices during the ‘20s and ‘30s.

Depression ended when World War II began. 5. President Hoover tried to keep prices and wages (unnaturally)
high during the Depression. He also tried to prevent foreign

B. VOCABULARY PREVIEW competition. This had a negative effect on world economies.

6. Americans voted for Franklin D. Roosevelt
1. c 3. a 5. h 7. j 9. b because he was optimistic and rich.
2. e 4. g 6. i 8. d 10. f 7. The New Deal was a plan to provide relief and recovery
during the Depression, but it was not successful.
Comprehension 8. The Great Depression came to an
end when the US joined World War II.
A. TRUE OR FALSE?

1. F – T he Great Depression began in (continued on the next page...)

1929 and continued throughout the ‘30s.

2. F – Herbert Hoover was the president when the
stock market crashed. FDR was elected in 1932.
3. F – T he Great Depression affected
economies around the world.

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 The Great Depression
Historic Events

Answer Key cont.

Grammar & Pronunciation SPELLING NOTE:

This lesson shows the American spelling of the word Practice.

A. REFERENCE Most other English-speaking countries spell it this way: Practise

Review the differences between “effect” and “affect.” (when used as a verb; Practice when used as a noun). Make it a

Have students find and read out the sentences from the reading: challenge for your students to find this word in the lesson and
see if they know the alternate spelling.
• It began in the US in 1929 and affected economies
across the world throughout the 1930s. (Paragraph 1)

• This had a major effect on manufacturing and trade and

resulted in mass layoffs around the world. (Paragraph 5)

Pronunciation tip: You can help your students hear the subtle
differences in pronunciation by typing “effect” and “affect” into
Youglish: http://youglish.com/. You may want to preview the
examples that come up if you are playing them in class. If your
students are interested in learning IPA symbols, print this chart
from our Resources section: https://esllibrary.com/resources/2151

B. PR ACTICE

1. affect 3. affect 5. effect

2. effect 4. affect

Vocabulary Review

1. invest 6. struggling
2. drought 7. relief
3. recession 8. GDP
4. optimistic 9. debts
5. credit 10. backfire

Discussion

Answers will vary.

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