Great Depression

Dear 5th grader,

In the 1920’s which was a long time ago, the people in American were really rich. Everybody in america was paying with credit cards, which is the plastic card which your parents use at the stores. Everybody was going on credit, which means you don’t have to pay for it until the end of the month. Credit cards take money from your bank account. Everybody was competing  with each other to see who could buy the most items, then suddenly the stock market crashed on October 29th 1929.  This crash made everyone loose there money. Which made america very poor and caused all of the parents to go crazy because they had lost there money. Loads of parents were loosing  jobs, lots of banks were closing, and people were getting paid less for there job. This was called the Great Depression, which was a very sad time in America.

Sadly, it is really hard bring the stock market back up because there were so many causes. One cause that was a big problem was how so many people were spending. Its like when you get to go shopping with the tooth fairy money that your earn, you automatically want to spend it to show all of your friends, you want the next best thing for everything. Also we were producing more than we were selling, like how Toys R Us are making too many toys, but not enough kids were buying them. When a stock market crashes it is really hard to get it back up. Another problem was that farmers, who make all of our food, were not producing as much.  At this time the new  president was Mr Roosevelt. He thought long and hard about trying to fix the market, and he came up with his plan for america which was called the New Deal. This plan was suppose to fix the economy, and make new jobs. New agency or groups that were made to suppose to help. Mrs Roosevelt also made a second new deal, which started social security which was a big part of helping the economy. Over all president Roosevelt saved the economy, and helped bring the stock market up, which is why so many people loved him as a president.

From,

Sarah