Let’s read the passage carefully and find three things that caused or made the Great Depression worse.
Step 1: Look for events or conditions mentioned in the text that led to economic trouble.
The first sentence says:
> “The Great Depression was the result of a series of economic events that culminated in the stock market crash of October, 1929.”
So one big event is the
stock market crash — but we need to look deeper at what *led* to it or made things worse.
Step 2: Find specific causes listed in the text.
Here are some key points from the passage:
- New farm machinery in the 1920s → farmers produced too much → supply > demand → prices fell → farmers lost money.
- Farmers went into debt to buy expensive items (cars, radios) they couldn’t afford later.
- Companies lowered production and laid off workers as profits dropped.
- Foreign countries owed money to U.S. banks but couldn’t pay back because their economies were also struggling → banks failed.
- No government system to help keep economy going when things got bad.
- People believed the economy would always grow → bought stocks on credit (borrowed money to buy stocks).
- Stock market grew 600% from 1921–1929, but it was based on false hope — people were buying stocks not goods.
- When panic hit, everyone sold stocks at once → Black Monday and Black Tuesday → stock values dropped 25% in two days.
- By 1933, stock market was only 10% of its 1921 value.
Step 3: Pick THREE clear circumstances that contributed.
We can choose any three of these, but let’s pick the most direct ones mentioned:
1. Overproduction by farmers due to new machinery → led to falling prices and farmer debt.
2. People buying stocks on credit (with borrowed money), thinking the market would keep rising — which created a bubble.
3. Banks failing because foreign countries couldn’t repay loans, and there was no government safety net to stop the collapse.
These are all clearly stated in the text and directly linked to causing or worsening the Great Depression.
Final Answer:
1. Farmers overproduced crops using new machinery, causing prices to fall and forcing them into debt.
2. Many people bought stocks on credit, believing the market would keep growing, which created an unstable bubble.
3. Foreign countries could not repay loans to U.S. banks, causing banks to fail, and there was no government system to prevent economic collapse.
Parent Tip: Review the logic above to help your child master the concept of reading worksheet for 8th grade.
