60 Minutes – Great Recession of 2008
Synopsis: The 60 Minutes episode on the Great Recession of 2008 offers a comprehensive look at the financial crisis that led to one of the most significant economic downturns in modern history. The episode explores the causes, impact, and aftermath of the recession, as well as the role played by financial institutions, government policies, and the housing market collapse.
Objective
By the end of this lesson, students will be able to:
- Understand the causes and consequences of the 2008 Great Recession.
- Identify how the recession impacted different sectors of the economy (housing, banking, unemployment, etc.).
- Discuss the role of government interventions and reforms in response to the crisis.
- Analyze the long-term economic effects of the recession on both individuals and businesses.
- Reflect on the lessons learned and the measures taken to prevent future financial crises.
Introduction (10 minutes):
- Engage students with a question: “Have you ever heard about the 2008 recession? How do you think a financial crisis can affect people’s everyday lives?”
- Introduce the topic of the 2008 Great Recession, explaining that it was the most severe financial crisis since the Great Depression.
- Provide a brief overview of what the episode will cover (causes of the crisis, its impact on various sectors, and the government’s response).
- Introduce Vocabulary:
- Subprime Mortgages
- Mortgage-Backed Securities (MBS)
- Bailouts
- Lehman Brothers
- TARP (Troubled Asset Relief Program)
- Unemployment
- Global Economic Impact
- Dodd-Frank Act
Analysis/Discussions
Group (10 minutes):
- After watching the episode, facilitate a class discussion:
- What were the primary causes of the 2008 recession?
- How did the collapse of the housing market contribute to the financial crisis?
- What was the role of financial institutions like Lehman Brothers?
- What was the government’s response to the crisis, and do you think it was effective?
- What were the long-term effects of the recession on the economy?
- How did ordinary people experience the recession (e.g., job losses, home foreclosures)?
Small Group Activity: Economic Impact of the Recession (15 minutes):
- Divide students into small groups (3-4 students each).
- Assign each group a specific area of the economy to analyze based on the 2008 recession:
- Housing and Real Estate: Impact of the housing market collapse on homeownership, mortgages, and foreclosures.
- Banking and Financial Institutions: The role of banks in the crisis, mortgage-backed securities, and the failure of Lehman Brothers.
- Government Intervention: TARP, the Federal Reserve’s role, and the Dodd-Frank Act.
- Unemployment and Job Loss: Effects on unemployment rates, businesses, and worker wages.
- Task: Each group should research their assigned area (using the episode content, textbook, or online resources) and create a brief presentation that outlines:
- Key facts about their assigned area.
- How the 2008 recession affected this sector.
- Long-term effects still felt today (e.g., regulations, economic recovery).
- Allow the groups to present their findings to the class.
Class Discussion: Lessons Learned and Preventative Measures (10-15 minutes):
- After the group presentations, facilitate a class discussion on what lessons were learned from the 2008 recession.
- What could have been done differently to prevent the crisis?
- How do you think future financial crises can be prevented?
- What measures have been put in place to avoid another recession like 2008 (e.g., Dodd-Frank Act, changes in banking regulations)?
Activity
- Housing Market Crash Simulation: This project simulates a housing market crash where students act as buyers, sellers, banks, and investors. They will experience how risky mortgage lending practices, unsustainable investments, and financial decisions can cause a market collapse, similar to the 2008 recession. The goal is to help students understand the complex dynamics of economic crises through a hands-on, interactive approach.
