Great Depression_Every

Dear Wade, five causes of the Depression were overusing credit and too much spending in the 1920’s, farms and industries weren’t producing as much as they used too, a huge difference between the rich and poor, the country’s money amount, and a decline in trading with foreign countries.

American_union_bank

In the 20’s people began using credit cards instead of cash. The credit card was easier to use and you didn’t have as much to carry around with you. When you use credit, it later charges your money to your account and at the end of the month you have to pay off that money. Sometimes people spent so much money that at the end of the month they didn’t have enough money to pay for everything they bought. They money that they couldn’t pay was put onto next month’s bill. A bill is almost like receipt where it tells how much money you musts pay.  Since people were running out of money, the banks had absolutely no money so when people came to get their money out of the bank, their money wasn’t there!

 

Another reason for the Great Depression was the depression of farms and industries. This doesn’t mean that the farms became depressed or sad, it just means that the farms and industries weren’t producing as much as they used to. Food and items were scarce and people were living off of almost nothing. Families didn’t have very much food to feed their families because they didn’t have any money either. Also, there became a huge gap between the rich and the poor.  The rich continued to get richer and the poor became poorer.  This made it hard for the poor to afford the products they needed to survive.  The problems in monetary policy, which is the amount of money in the country, made it hard on everyone as well. They thought that the money from the rich would “trickle down” to the poor.  This of course didn’t happen and as you the know, the poor just got poorer. There was also a decline in foreign trade. This means that the US wasn’t trading with other countries as much as they used to. We didn’t have as many materials as we used to and neither did they.

461px-Lange-MigrantMother02