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Satisfactory Essays
1. Although economists still can not agree on what exactly caused the Great Depression, there were several events that has been agreed on that some economist believe had an effect on the Great Depression. The five major causes of the Great Depression included the stock market crash of 1929, the economy lacked diversity, uneven distribution of wealth/the credit structure of the economy, declining exports, and there was an unstable international debt structure. Many people were shocked when the depression hit in 1929, mainly because it followed so closely to the New Era time period which brought a lot of economic miracles. During the 1920s more people began to invest in the stock market, causing the stock market prices to rise. Throughout the 1920s there were some ups and downs dealing with the stock market, there were only a few temporary lapses. The lapses followed a strong upward trend in 1927. A stock market boom began in 1928, when the bull market lured even more people to invest. In 1929 around the time of autumn, the strong bull market began to fall apart and collapse. There were some declines in the stock market prices which alarmed many people. On October 29, a day known as “Black Tuesday,” the stock market failed for good leading the market in a deep depression that lasted for more than four years. The event of the stock market crash, many people believed that it was the spark to the fire; it is what caused the beginning of the Great Depression. One of the main causes of the Great Depression was the lack of diversity in the American economy in the 1920s. The main basic industries during this time period were the construction companies and automobile companies. In the late 1900s, the construction and automobile industry beg...

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...lp the government avoid a shortfall. Hoover introduced the Agricultural Marketing Act in April 1929; it was a program that was used to help farmers maintain prices. Although the Agricultural Marketing Act was successful, the Hawley-Smoot Tariff was unsuccessful and ended up harming the agricultural economy instead of helping them. By like spring of 1931, President Herbert Hoover’s position in office started to decline. Many Americans blamed Hoover for what was happening with the economy and blamed him for the unemployed people which were called “Hoovervilles.” Democratic people wanted and continued to urge Hoover to support more forceful and aggressive programs of public speaking and programs of relief. Hoover did not listen to the democrats because he felt that his polices and programs were working which caused him to decline in popularity in the political office.