Zack Savage causes of the great depression

The great depression was caused by…

The over use of credit. Credit is used when you don’t have the money for something, so you pay for it over time. The problem with this is that the price for the thing would get bigger and bigger as you pay. And if you buy everything on credit, but don’t have enough money for each payment. And if you don’t have money to pay of the interest with credit, you put that on interest making the problem even worse and you get more and more dept. And before the depression, people were buying everything on credit. Everyone was falling into lots of dept.

And…

Before the depression, profits soared, but the money only went to the people that were already rich. The people that worked for the rich didn’t get much of the money. This problem got so bad that most of the money belonged to only 1% of the people.AS the 20’s approached the 30’s the poor were getting poorer and the rich were getting richer. When the economy started to get bad, only 1% of the people had a significant impact on the economy.

And…

More stuff was being produced than was being bought. People were unable to buy anything, but factories were still making goods and farmers were still making food. All of the money and work that went into making of the goods was wasted. This waste of labor hurt the economy even more. Many people lost their jobs so that the companies they worked for wouldn’t lose money paying for them. This high unemployment rate was one of the more important results of the Great Depression.