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Cause and Effect:
Transcript of Cause and Effect:
Cause and Effects
Causes of the Great Depression
Stock Market Crash
Too Many Poor People
Before The Great Depression banks had overextended credits to farmers and given loans to foreign countries. When hard times hit banks had stopped giving loans to the foreign countries and in return the countries defaulted on their loans. Also farmers could not pay off their credits because they could not make enough money from their crops. Because of this banks shut down, depriving America of their banking system.
Cause and Effects of the Great Depression
By: Kelvin, Kayla, Casey, and Bridget
The importance of the cause is
Loss of Jobs
The Great Depression has caused most of Americans to lose their jobs. Since their wasn't enough jobs looking for help, Americans were unemployed always on the lookout . This effect also started many other effects.
Because of the production of vast crops America's farmland resulted in over-plowing. Also during this time period one of the worst droughts in history hit the Great Plains. The wind blew the dry sand over the prairies, making the Midwest to be called the "Dust bowl". This also caused farmers to go bankrupt.
Stock Market Crash
The Stock Market Crash is thought to be the main cause for The Great Depression. During the 1920's, numerous amounts of people had bought stocks, but they only bought half of it so that they could get the rest when they had sold it. Unfortunately, once the stock market crashed in Oct. 1929, people were forced to pay for stocks worth less than they were worth. To add to it, most of the people couldn't even pay for the stock which left them broke.
Pictures from: google images
Effects of the Great Depression
Loss of jobs
Crime Rate increase
No high education
Too Many Poor People
"In 1929, 40% of families in the country were still living at or below poverty level." according to:
These people couldn't pay their debts to the bank, causing some banks to shut down, as they had no way to get money from those who hadn't any. This population of people couldn't afford good and that caused another load of people to lose their jobs, which just caused more poor people.
Because of the loss of jobs people have now resorted to some other way to get their needs met.
-The crime rate went up. People stole the necessities that they needed to live such as food, water, and clothing.
-Suicide rates also increased because people weren't getting enough nutrition to live.
-Some women went to prostitution to make money for themselves or their families to live.
-Lastly, higher education was out of reach for most children, because of not enough money to pay for college intuition.
Effects of job loss
The government could have lent money to the banks for low interests, but did not. When they finally did "take action" it was of little help to the people. There were things set up such as bread lines, these were stations in areas provided by the government to keep the people from starving. But even then they were only open for a certain time each day, and one had to get there early in order to receive any food, it wasn't an endless amount of food after all.
The Great Depression took place a time called the Dirty Thirties. Farming was absolutely and completely horrible for the thirties, which was the time of not only The Depression, but The Dust Bowl. During WWI, and long after, the land had been terribly over-plowed. Partnered with the worsts droughts in history, when the wind blew there was noting to hold the dust, blowing it about.
The importance of the causes and effects of the Great Depression is that America has caused itself to have one of its worst time period because of all of the mistakes that backfired.