Today Mr. McClung asked us to write a blog post about the Great Depression. There were six main reasons the Great Depression started: the Stock Market crashed, Bank failures, Reduction of buying, Drought, Roaring Twenties,and Over production.
The Stock Market crashed because of riskey investments and the value of certain companies were going down so people started panicing and selling their shares. This lead to the banks failing because the banks had shares in the stock market too and lost alot of money trying to pay back people who needed to get their money to pay for things that were up until the stock market crashed were easier to pay for with the money was still coming in. Due to the lack of money, families spent less money on groceries and other needs which lead to factories over producing and the people who worked in the factories weren’t getting payed as much. The money that had been paying for all the food, cars, and toys was being cut to a lesser amount.
People in the cities weren’t the only people who were suffering. The farmers and people who raised live stock weren’t able to pay for their property and were forced to sell their animals, houses, and alot of their valubles to make up for it and most were forced to leave everything behind and move. They became travelers and over worked the soil in the great plains thus making it a dry and dusty place that became known as the Dust Bowl. The Dust Bowl was a dry lifeless place; without trees or bushes to hold the dirt down it offen blew as far out as 30 miles out into the Atlantic Ocean.
One of the first things that triggered The Great Depression was in the Twenties or The Roaring Twenties people were careless with thier spending and offen bought stocks and other items that they knew they couldn’t pay off and the Stock Market loaned them money thinking that they would pay the money off after the stocks went up.
The president during this time was President Hoover. He had promised that there would be no more poverty. “There will be a chicken in everypot.” President Hoover. It was during his term in office that the Great Depression started. As more and more people lost thier farms they moved to the cities in search of new jobs wich caused major over crowding. The ecomomy continued to decline until President Roosevelt or FDR was elected. At his inaugural speech he inspired people by saying,”The only thing we have to fear is fear itself.” From that point on he continued to creat jobs for people in America. He called this plan The New Deal. It let the government have more power and helped create millions of jobs and eventualy got America outof the dark time.
If the people would have only spent the money that theyhad instead if getting so many loans, the Stock Market wouldn’t have crashed,Banks wouldn’t have failed, People wouldn’t have lost evrything they had.
Macy Valentine <3