Man, this is depressing…..

In order for most Americans to get all of the fancy new stuff they had to buy on credit and through payment plans Credit only works though if everyone believes that individuals are “good” for those payments. And that comes through a stable economy- one in which people have jobs and payback their debt. (I’m lookin’ at you, debt defaulters!!!) What do we always hear is the cause of the Great Depression?

Only 3% of Americans actually owned stock in the 1920s People began going to their banks in the early 30s in order to withdraw their money because the economy was slowing down When the “rush” on the banks began, banks had to call each other in order to call in all of the debts that others owed them. But there was not enough money to collect and thus banks had to shut down… …and people lost their money.

Prices on goods begin dropping drastically because no one could afford anything. When prices dropped, business owners weren’t making money and thus workers were laid off. Massive unemployment ensues.

The Great Depression was INTERNATIONAL Treaty of Versailles Where would Germany get the money???!!! Yeah. Us. IN addition, France and Britain owed us money they had borrowed during the war. (Are you seeing a pattern yet?) When OUR economy collapsed in the early 30s, so too did Europe’s…

And there we have it. The Great Depression was not just about the United States, because if it were, we could have traded our way out of it. (Maybe.) So, what IS the pattern? Over-borrowing on a global scale. Lollipop to s/he who can make the connection to today! So what was done to fix the Great Depression? Let’s find out!