Great Depression Causes- Josh Y

Hey children,

There were many important causes of the Great Depression.  First, farms and industries were very depressed due to new technology.  New machines made production easier which lower prices for crops.  This led to Farmers’ money falling a lot.  Many major industries such as textile, mining, and railroad declined.  Companies were producing too many amounts of goods that people weren’t buying.  Workers were not getting payed a good amount which made them very frustrated.

Another factor was the difference between wealthy and poor people.  The people were not in control of the money the country made.  Due to new mechanics, many people were losing jobs.  Banks became very weak due to the Stock Market (a place where people took part in owning part of a company.  People did not have money because they had wasted it all on stocks.  The Roaring 20’s made people use money that they didn’t even have.  They used credit which meant they didn’t actually have the money, but they were still buying things.

The country was basically arranged through classes.  This means that the people at the highest class such as government people, business owners, had all the money and as you went down classes, the wealth was less.  Regular people were struggling because they didn’t have enough money to provide for their families.

Finally, the US was not trading as much with other countries.  America did not have enough money to keep up with the trading.  Since everyone had taken loans from the banks, they ended up in trouble since the banks had nothing.  The US had lent money to other countries during the war, but they no longer had that money.

Overall, there were many important causes that led to the Great Depression.  They all came back to involving the Stock Market Crash.  The crash put the country in a bad place with money and it was a struggle to get through it.

American_union_bank

news paper