In the space provided below, write a minimum of 5 paragraphs, responding to the question, What caused the Great Depression? You must support your response with evidence from the various documents. The rubric that will be used to grade the responses is provided.
Rubric: Introduction: (5pts)
-General Information/ background to the prompt. ______/1
-Clearly defined thesis statement. _______/2
Body Paragraph (10pts)
Topic sentence (claim) ______/ 1
Evidence #1 with Cite _______/2
Commentary connecting Ev. #1 to claim _______/2
Evidence #2 with Cite _______/2
Commentary connecting Ev. #2 to claim _______/2
Evidence is correctly used for argument _______/1
Body Paragraph (10pts)
Topic sentence (claim) ______/ 1
Evidence #1 with Cite _______/2
Commentary connecting Ev. #1 to claim _______/2
Evidence #2 with Cite _______/2
Commentary connecting Ev. #2 to claim _______/2
Evidence is correctly used for argument _______/1
Body Paragraph (10pts)
Topic sentence (claim) ______/ 1
Evidence #1 with Cite _______/2
Commentary connecting Ev. #1 to claim _______/2
Evidence #2 with Cite _______/2
Commentary connecting Ev. #2 to claim _______/2
Evidence is correctly used for argument _______/1
Conclusion (2pts)
Clear Summary of your argument that aligns with Thesis . _______/2
Introduction:
The Great Depression was a severe worldwide economic depression that occurred in the 1930s. It is considered one of the worst economic crises in history. While the exact causes of the Great Depression are debated among economists and historians, several factors played a significant role in its occurrence. This essay will explore the various factors that led to the Great Depression, including the stock market crash, unequal distribution of wealth, government policies, and international economic conditions.
Body Paragraph 1:
One of the main causes of the Great Depression was the stock market crash of October 1929. The crash was a result of over speculation and excessive borrowing in the stock market. According to document 1, the stock market had experienced a period of rapid growth during the 1920s, leading to overvaluation of stocks and unrealistic expectations. When investors realized that the market was overinflated, they started selling their stocks, which led to a panic and a sharp decline in stock prices. This caused significant losses for investors and resulted in a decrease in consumer spending and business investment.
Body Paragraph 2:
Another factor that contributed to the Great Depression was the unequal distribution of wealth in the United States. According to document 2, in the 1920s, the top 1% of Americans owned more wealth than the bottom 42% combined. The concentration of wealth in the hands of a few meant that a large percentage of the population did not have enough purchasing power to sustain economic growth. This led to a decrease in consumer demand, which in turn affected businesses and led to layoffs and closures. The unequal distribution of wealth exacerbated the impact of the stock market crash and contributed to the severity of the economic downturn.
Body Paragraph 3:
Government policies also played a role in causing the Great Depression. The Federal Reserve's monetary policy in the 1920s, as mentioned in document 3, was one of the key reasons for the economic collapse. The Federal Reserve tightened the money supply, leading to higher interest rates and a decrease in the availability of credit. This policy was aimed at curbing speculation and stabilizing the economy, but it ended up exacerbating the crisis. The lack of credit and funding for businesses and consumers further contributed to the decline in economic activity.
Body Paragraph 4:
International economic conditions, specifically the decline in global trade and the impact of World War I, also played a role in the Great Depression. According to document 4, the global economy was already weakened by the aftermath of the war, with many countries burdened by war debts and reparations payments. The Smoot-Hawley Tariff Act of 1930 further worsened the situation by imposing high tariffs on imported goods, leading to retaliation from other countries and a decrease in international trade. The decline in global trade severely impacted American businesses that relied on exports, further deepening the economic crisis.
Conclusion:
In conclusion, the Great Depression was caused by a combination of factors, including the stock market crash, unequal distribution of wealth, government policies, and international economic conditions. The stock market crash and subsequent decrease in consumer spending and business investment played a significant role in triggering the economic downturn. The unequal distribution of wealth meant that a large portion of the population did not have enough purchasing power to sustain economic growth. Government policies such as the Federal Reserve's tightening of the money supply and the imposition of high tariffs worsened the crisis. The decline in global trade and the impact of World War I further deepened the economic downturn. Overall, the Great Depression was a complex event with multiple causes that worked together to create one of the most severe economic crises in history.