Project: Crash, Chaos & Coffee: A Journey Through the 1929 Market Crash

Contextualization

The Great Depression, aka the Crash of 1929, stands as one of the most impactful events of the 20th century; an unprecedented global economic crisis that began in the United States with the stock market crash on the New York Stock Exchange, having repercussions around the world, and particularly, the Brazilian economy which at the time was heavily dependent on coffee exports.

There were multiple elements that triggered this crisis, like the end of World War I, which fostered a period of rampant financial speculation alongside an overproduction of agricultural and industrial goods.

Understanding this event is crucial to grasp how capitalism and global economies operate, as well as the subsequent economic crises that affect our lives today. The Crash of 1929 stands as both a cautionary tale and an example of the consequences of unregulated financial markets and reckless economic policies.

Introduction

Although a complex subject that demands extensive study, four main topics emerge when discussing the Crash of 1929: the speculative bubble that led to the stock market crash; the ensuing Great Depression; the global and national impacts; and, finally, the recovery efforts.

Throughout this project, you will delve into these topics, building a sound understanding not only of the Crash of 1929 but also of the global economy and how financial crises can affect the lives of ordinary people.

In this journey, we expect you to develop essential skills including time management, teamwork, research, and critical thinking, all while learning more about this pivotal event in world history.

Hands-on Activity

Stock Market Crash of 1929 Simulation

Project's Objective

The objective of this project is to make students understand the dynamics of the stock market and how it can influence the global economy. They will actively participate in a simulation of the Stock Market before, during, and after the Crash of 1929. After the simulation, students will research the impact of the Crash in Brazil and worldwide, and analyze recovery efforts and historical lessons.

Project Description in Detail

Students will be divided into groups of 3 to 5 and each group will be a "corporation" trading on the stock market. They will be given an initial amount of "money" for investments and there will be trading rounds based on actual historical events, allowing them to experience the rise and fall of the stock market.

Students will have to make business decisions based on the information provided for each round, fostering research, critical thinking, and decision-making skills. They will learn about market speculation, overproduction, and the importance of investment diversification.

Post-simulation, groups will research to understand the impact of the Crash of 1929 in Brazil and worldwide, as well as the efforts that were made for economic recovery.

Materials Required

• Computers with internet access for research purposes
• Pens and paper for note taking
• Chips or index cards to represent "money" and "stocks"
• A timeline or bulletin board for the events of each trading round

Step by Step Detailed Activity Guide

1. Divide students into groups of 3 to 5.
2. Provide each group with an initial amount of "money" and "stocks".
3. Start the first round by explaining the economic scenario leading up to the Crash and have the groups make decisions on whether to buy, sell, or hold their stocks.
4. Use a timeline or bulletin board to go through key events of the Crash of 1929, letting the students make decisions at each round.
5. After the simulation, have the groups research the impact of the Crash of 1929 in Brazil and worldwide, as well as the efforts that were made for economic recovery.
6. Groups will prepare a presentation of their findings, including a brief account of their experience during the simulation.

Project Deliverables

1. Groups will present their findings on the Crash of 1929 covering the speculative bubble, the Great Depression, the global and national impacts, and the recovery efforts.

2. Each group will produce a written report reflecting on their participation in the Stock Market Simulation and what they learned about the Crash of 1929. The report should include the following sections:

   • Introduction: Contextualization of the Crash of 1929, its relevance, and the project's objectives.

   • Development: Discussion of the simulation experience, detailing the strategies adopted and the results obtained, tying it in with the theory of the Crash of 1929. Indicate the sources used for learning and research during the project.

   • Conclusions: Reflection on the learning acquired through this project, what were the main lessons learned, and the connections made between this historical event and the present day.

   • Bibliography: List the research sources used during the project.

The report and the presentation are complementary, the presentation will focus on sharing the group's learning with the class, while the report will be a more in-depth reflection of their experience connecting the practical aspect with the theory studied.