write a body paragraph that explains how the investment in stocks 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
One of the main causes of the Great Depression was the investment in stocks, as it contributed to the economic collapse of the 1930s. As stated by historian John Kenneth Galbraith, "The stock market crash of 1929 is often cited as the beginning of the Great Depression" (Galbraith 32). This crash can be attributed to the over speculation and excessive buying of stocks on margin, which eventually led to a sharp decline in stock prices. The stock market crash was a direct result of investors' faith in the continuously rising market, leaving many individuals and businesses financially ruined. Furthermore, the crash triggered a chain reaction of financial failures, as numerous banks had invested heavily in stocks and lost their clients' savings. For instance, the collapse of the Bank of the United States, one of the largest banks at the time, shook public confidence in the banking system, translating into massive withdrawal of deposits and ultimately worsening the economic crisis. The evidence clearly demonstrates how the investment in stocks had severe consequences on the economy, as the crash of the market set off a series of events that led to the Great Depression.
