Great Depression

 

American_union_bank

Hey!  I heard you are learning about the Great Depression at school.  To help you, I am going to tell you what I learned.

The Great Depression began during the 1930s.  The stock market crash was the catalyst of the Great Depression.  A catalyst is something that causes an important event to occur.  When the stocks started to weaken, more and more people sold their stocks as they started to panic over the stock market.  The banks tried to save the band by using other peoples’ money which caused the bank to lose other peoples’ money.  However, it failed and the stock market crashed.

There were five different causes of the Great Depression.  One was that the banks failed.  Because the banks failed, people lost all their money that was in the bank.   Two, farms and factories was making more food and items than it was bought by other people.   As a result, farmers could not pay for their new farming equipment.   Third, rich and poor individuals became more separated.  The upper class, businesses, had more control over money compared to the lower class.  Fourth, there were problems with the monetary policy.  The monetary policy is the government’s actions toward economy through the central bank.  This caused taxes to be cut.  Finally, foreign trade was decreased.  Others countries did not want to trade with America because America could not pay them.  Tariffs, which is a tax on imports and exports, were used to block trade with other countries and protect industries.  About-Causes-Great-Depression

This is a summary of the Great Depression.  Do not forget that the stock market crash was the catalyst and there are FIVE different causes of the Great Depression.  Good Luck!