Causes of the Great Depression

Dear 5th Graders,

On Tuesday, October 29th, 1929, the stock market crashed in America.  The Stock Market Crash was the start or the spark of the Great Depression.  The Great Depression was when a lot of people lost their jobs, a lot of banks closed, and many businesses lost all of their money.  During the 1920’s, people bought all of their things on credit, which means they pull out a card and pay for it later.  A lot of the people who bought things on credit, did not have money to pay for the things in the future.  The Great Depression was a major low in American history.

There were five things that caused the Great Depression in America.  The first reason was that farms and industries were depressed meaning that they were not doing well money wise.  The second cause of the Great Depression was that there was a difference in numbers between the rich and the poor.  The third cause of the Great Depression was that the banking industry weakened.  The fourth cause of the Great Depression was that there were problems in politics, which means the government in a way.  The fifth cause of the Great Depression was a decline in foreign trade which means we Americans did not trade a lot with other countries.Unemployed_men_queued_outside_a_depression_soup_kitchen_opened_in_Chicago_by_Al_Capone,_02-1931_-_NARA_-_54192700039884