The Great Depression – Alexa Pawela

Dear Hanna of Mrs Gross’s fifth grade elementary school class,

I would be more than happy to help you understand the causes of the Great Depression. The five main causes are; farms and industries were depressed, there was a growing gap between the rich and poor, banking industries were becoming weak, there were problems in the monetary policy and there was decline in foreign trade.

One main cause of the Great Depression was the growing gap between the rich and the poor. Which means that the people who are wealthy and rich are becoming even wealthier than before, and the people who are poor and less fortunate are losing everything they have. Many people starting losing jobs and becoming unemployed.  There was 59% of the countries wealth in only 1 % (the rich peoples) to control it. It was not fair and the gap was increasing rapidly.

Another huge cause of the Great Depression was that the farming and industries were becoming depressed. Farming everywhere started to decline in profit including; textile, lumber, mining and railroad industries.  Many car and construction industries had little to no orders. There were a lot more goods than needed to sell in warehouses. Which means the demand was not high for the goods but workers were still making and ordering them but no one was buying the goods. Many people lost jobs and salaries and wages dropped greatly. The average person was starting to not be able to afford manufactured goods.

The last big cause of The Great Depression I am going to talk about is the decline in foreign trade. During this time bank loans began to dry up and stop because of the stock speculation. Also international trade slowed down because america had less money. High U.S. tariffs blocked international trade. The high tariffs were used to protect domestic business an industry.

That is a description of  three of the 5 main causes of the Great Depression I hope I helped you better understand!About-Causes-Great-Depression