Remember: One person's spending is another person's wages, so when spending shrinks, jobs shrink too. Neighbors and wages turn it round.
Read and answer
Read the story first, then answer.
Millbrook's money goes roundMillbrook was a busy made-up town. Families spend their wages at shops, shops pay their helpers, and the helpers spend again, round and round. Then, in 1929, a huge crash in the share market made big news, and people worried about the future. Families began saving every coin and spent only on what they truly needed. Fewer people came to the bakery, so Cy the baker had loaves left over every night, and he had to let two helpers go. With no wages, the helpers spent less too. Less spending meant fewer sales, fewer sales meant fewer jobs, and fewer jobs meant even less spending. But Millbrook did not give up. Neighbors shared soup, mended clothes and swapped what they had. This really happened around the world in the 1930s and is called the Great Depression. In some countries about one worker in every four had no job. It lasted for years. Slowly, ways out were found: governments paid people to build roads, bridges and schools, because wages meant spending and spending meant jobs.
1
In the story, Cy let helpers go.
2
One person's spending is another person's .
breadwagessavings
3
Families spend less. What comes next in Millbrook's spiral?
Shops sell lessShops sell more loavesHelpers earn higher wages
4
Number the steps of the spiral.
Families spend less
Helpers have less to spend
Shops need fewer helpers
Shops sell less
5
Look at the four workers. In some countries about of every four workers had no job.
Match, fix and think
6
The Great Depression lasted for years, and it was hard on many families.
TrueFalse
7
Join each cause to what came next.
1Families save every coin
2Cy sells fewer loaves
3Helpers lose their wages
4Roads and bridges are built
Athey spend less too
Bthe bakery sells fewer loaves
Cwages let families spend again
Dhe needs fewer helpers
8
Circle every thing that helped.
Neighbors sharing and swappingFamilies saving even harderGovernments paying people to build roadsShops hiring fewer helpersRules to keep savings in banks safe
9
Maya says: if every family saves harder, shops will sell more. Is Maya right?
YesNo
10
Why did some families lose their savings?
Shops raised their pricesThe town bank ran short and closedNeighbors borrowed them
11
Why does paying people to build roads help the shops?
Roads make loaves cost lessBuilders buy no breadWages let families spend again, so shops sell and hire more
12
Write how neighbors helped each other in Millbrook.
13
Draw the spiral going down. Then draw an arrow that turns it back up.
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