The Great Depression- Jessica Pierce

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Dear Amanda,

Thank you for asking about the Great Depression!  In my 20th century class we’re learning all about this period of time in US history.  This period started in 1929 and continued on through the 1930’s.  The Great Depression was a time of economic hardship in America.  This basically means that many people didn’t have jobs, so money was hard to come by and many people went hungry.  It might be hard for you to picture, but most people, at this point in time and back then, aren’t as fortunate as we are now.

The Stock Market Crash was the “catalyst” for the Great Depression.  This basically means that with all of the problems leading up to Great Depression, the addition of the Stock Market crashing tipped everything over the edge and forced America into the Great Depression.  Many people think that the Stock Market Crash was a cause of the Great Depression, but these people are wrong. The reason the Stock Market Crash was such a big deal was because everyone took out their stock at once.  Think of it like dominoes.  All of the causes were already in place, but the Stock Market Crashing was the last domino to tip over.

In the 1920’s people used credit for everything.  Their credit was much like the credit we have today; they paid with credit cards and paid for what they bought later in installments with interest added on.  This would have been okay, but the people weren’t paying off their debt and this was causing the banks to lose a ton of money.  This made the Depression worse.

Another reason for the Great Depression was that farms and factories were making too many things. Because people didn’t have jobs, they weren’t buying as much stuff and more things were being made than people were buying. The companies and farms producing food and items weren’t getting as much money as they needed, so they were firing more people so they wouldn’t lose money. This made the Depression even worse.

These are just some of the many causes of the Great Depression. This was a very sad time in American history. I hope you understand some of the causes of the Great Depression! Don’t be afraid to ask me if you have any questions!

 

Sincerely,

Jessica Pierce