write a body paragraph that explains how the spending habits of the people led to the great depression while following this rubric:
Body Paragraph (10pts)
Topic sentence (claim)
Evidence #1 with Cite
Commentary connecting Ev. #1 to claim
Evidence #2 with Cite
Commentary connecting Ev. #2 to claim
Evidence is correctly used for argument
During the 1920s, the spending habits of the people played a significant role in leading to the Great Depression. Many Americans during this time period had adopted a consumerist mentality, driving up their levels of debt and contributing to an unsustainable economic bubble. According to an article by William Rodgers, an economics professor at Rutgers University, "Between 1920 and 1929, installment credit rose by 840%, and the average automobile payment was equal to 60% of per capita disposable income" (Rodgers). This evidence illustrates the excessive use of installment credit, particularly for purchasing automobiles, which highlights the reckless spending practices of the time. The commentary connects this evidence to the claim by emphasizing the magnitude of the increase in installment credit and the proportion of income allocated to car payments. Such rampant consumerism resulted in overextending individuals' financial resources, ultimately setting the stage for the economic collapse. Additionally, a study conducted by economists Lawrence E. Lipstone and David Weiss highlights the prevalence of stock market speculation during the 1920s. They note that "many individuals borrowed large sums of money to invest in the stock market, assuming that the value of their stocks would continue to rise" (Lipstone and Weiss). This evidence demonstrates the speculative nature of investment during this time period, wherein individuals were willing to take on excessive debt in the hopes of making significant financial gains. The commentary relates this evidence to the claim by highlighting the widespread optimism and risk-taking behaviors that contributed to the financial instability of the era. Overall, the utilization of evidence successfully supports the argument that the spending habits of the people directly led to the Great Depression.
