Let’s read the passage carefully and find three things that caused or made the Great Depression worse.
Step 1: Look for causes mentioned in the text.
The first paragraph says:
- New farm machinery in the 1920s let farmers grow too much → supply went up, prices dropped, profits fell.
→ So, overproduction by farmers is one cause.
Then it says:
- Credit was introduced → people bought expensive items (cars, radios) on debt.
→ When the economy slowed, they couldn’t pay back loans.
→ Companies lost money, laid off workers → more problems.
→ So, buying on credit and then not being able to repay is another cause.
Also:
- Foreign countries borrowed from U.S. banks but couldn’t pay back → banks failed.
→ No government system to help during hard times.
→ People thought stock market would keep growing → stocks were overvalued.
→ Then panic hit → everyone sold stocks → Black Monday/Tuesday → big drop.
→ By 1933, stock market only worth 10% of what it was.
So we can pick any three clear causes from this.
Let’s choose:
1. Farmers produced too much food because of new machines → prices dropped → they lost money.
2. People bought cars and radios using credit (borrowed money) → when economy slowed, they couldn’t pay → companies suffered.
3. The stock market grew too fast based on hope, not real value → when people panicked and sold, it crashed badly.
These are all directly stated in the text and contributed to the Great Depression.
Final Answer:
1. Overproduction by farmers due to new machinery led to falling prices and profits.
2. People bought expensive items on credit and couldn’t repay when the economy slowed.
3. The stock market became overvalued and crashed when investors panicked and sold their stocks.
Parent Tip: Review the logic above to help your child master the concept of reading worksheet 8th grade.
