Great Depression Causes

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On the 29th of October 1929, Wall Street, the American (US) stock exchange, collapsed starting the beginning a period known as ‘The Great Depression’ in America; this was in result of multiple causes which started in 1921. These causes caused the US to go from the ‘Roaring Twenties’ into the depression. The President was Herbert Hoover (1929-32) and before him was Calvin Coolidge (1923-29), both republicans, who cared more about the big businesses rather than the farmers and the workers. With a government focused on isolating the country and banks giving out huge loans it showed that the US had more than just one problem. Though the laissez-fare policy was a huge contributing factor, it could have been the sole factor for the stock exchange collapse as its policy of not interfering caused lots of problems. As a result the US went into the one of the worst economic downfalls the world has ever had. There were numerous domestic and foreign economic policies and beliefs put in place by the Republican government to try and better America. In the end most of these were causes of the depression. The government was trying to isolate America from the rest of the world so they passed the Fordney-McCumber Act (1922) and the Smoot-Hawley Act (1930), both of which imposed high import tariffs (taxes) on all good being imported into the US. This was to try and protect the domestic market. At first these acts were doing well but then it became America’s downfall as she relied too much on her own domestic market. Other countries also started imposing import tariffs, cutting the US off from world trade and thus isolating them completely. The Republicans preferred for businesses and the industry to grow, rather than the agricultural sector. The gov... ... middle of paper ... ... between each other, each time for a bit more. The public would then see the price rising and then buy the shares giving the companies a nice profit. Therefore the laissez-faire policy was the sole reason for the collapse of the stock exchange as it had such a huge impact. Thus the collapse of the stock exchange was the result of many different causes. The bad presidential decisions helped ruin the US economy as they didn’t focus on all parts of the US economy – mainly neglecting the agricultural sector. There were so many reasons why the stock market crashed. The laissez-faire policy had a huge influence. Furthermore the loans paid towards other countries that were never paid back resulted in a huge amounts of money lost which couldn’t be paid back to try help the US. As a result the stock market crash started one of the worst depressions the world has ever seen.
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