The Great Depression -Jay H

Hey kiddo!

The Great Depression was a very bad time in the United States.  Everyone went from having money in the bank, to having absolutely nothing.  This didn’t just come out of nowhere, people were using credit, instead of using paper money.  Credit is when you buy for something and then pay for it later, your parents probably do this today using a credit card.  The banks today are much better than they were during the 1930’s so your money is guaranteed to be there when you need it.  At that time it was different and the banks were using the people’s money to pay off bills.

Another cause was that the people who ran the farms were being replaced by machines such as the plow and the tractor. These machines did more work in less time and the machines did a better job.  This caused the farming business to make much less money.  The crops were cheaper and the farmers lost their jobs, this made the economy weaker and was a big cause of The Great Depression.

The big event that started The Great Depression was the Stock Market Crash.  A stock is when you put money into a company and then you either gain or lose money depending on how the company does.  For example if the company does well then you would make money and if the company does badly then you would lose money.  The Stock Market Crash was when people had money in a stock, or business, and then they spent the money on debt.  Debt is when you owe money to people, when you do not have any money to pay with.

There were many more causes of this depression, but these are the major causes.  They were bad times and you are lucky enough to not have had to go through them. The farming, stock and bank industries are much safer now and the money is guaranteed to be in the bank. America has learned from The Great Depression and we are better now than we were then.

Thanks for reading bud,

Jay Hurlocker

news paperEngland, Arbeitslose vor Gewerkschaftshaus