Great Depression- Reagan Dolliver

Dear Sophia,

The Great Depression was caused by many different things but there are three main causes. One cause of the depression was the crashing of the stock market. Another cause of the Great Depression was that Farm and Industries were failing. Another reason for the depression in America is that the Banking Industry got weak and failed. I think that the Great Depression was a really big part of American growth that brought America down.

One really important reason the Great Depression happened was because the crash of the Stock Market. The stock market is a system that allows normal people to buy a part of a company at a certain price, than sell it hopefully when it is worth more. The stock market crashed on October 29, 1929, also known as Black Thursday, and everybody was shocked and freaked out. October 29, 1929 was the day that started the Depression because there was a lot of chaos.

Another reason for the Great Depression was because the Banking industry was failing. The crash caused most banks to lose the money and the money in people’s bank accounts. There were more people who lost loans. Much unemployment caused problems on mortgage.  A mortgage is a loan, which is borrowing money from the bank, in which your house functions.

The last reason that I am going to go over is the Farm and Industries were failing and depressed. Right before the stock market crashed, car and construction businesses had less and less orders. Throughout the Great Depression, wages dropped and employers laid workers off. Many people could not afford manufactured goods and there were excess amount of goods in factories.

The Great Depression was a huge turning point in American history because the stock market crashed and it caused much chaos. Many people did not know what to do because their life savings that were in the bank were lost. Some people even killed themselves because they had no idea what to do. The Great Depression had many more than three causes, but these were what I felt were the most important.

 

Sincerely,

Reagan