Causes & Early Effects of the Great Depression

1. What happened on "Black Tuesday"?
on Black Tuesday 1929 the stock market cashed the DOw Jones dropped 12%. This was the biggest fall in the stock market on America.

2. How did the economic trends of the 1920s in industry, agriculture, and with consumers help cause the Great Depression? (Make sure you include significant details about each area in your answer. It should be at least a paragraph)
The AGRICULTURE in the 1920's went way down from the times of the war. During the war wheat and other grain were in high demands, so farmers took out loans in order to expand their farms to meet the demand. When the war was over the demand went down, and farmers lost because they were in debt from taking out the laons, and they couldnt pay the loans back because they werent making enough money to. Because of this the farmers raised the prices of their gooods, which made the people have to pay more. Because of the credit that was now avaible people would creat debt for themselves. The INDUSTRY helped caused the great depression because the basic textiles (railroads,textiles, and steel.) Coal was hit hard after the war because there were new forms of electricty so people were no longer buying it. When housing fell so didnt the jobs that went with it such as construction, and industries that built things such as furniture, rugs etc.

3. According to your reading, what are the major causes of the Great Depression?
Coustmers have less money to spend, they are living on credit, the collasp of some industries and the farmers who lost money and had to raise their products prices.

4. What was Hoover’s philosophy of government?
He thought that one governments chief functions was to foster cooperations between competing groups and businesses. And that government should intervene to make sure that both sides get what they need, the government would force anything that it was a privlage.

5. What was Hoover’s initial reaction to the stock market crash of 1929?
He tried to tell Americans that America had a strong footing and everything would be all right,he wanted them to go about their business as usual and look to a brighter future.

6. What was the nation’s economic situation in 1930?
more companies were going out of business was shrinking while the unemployment rate soared up, Soup kitches were everywhere, and general misery was apon the people.Shantytowns began to grow in every city, and hobos continued to roam.

7. How did voters in 1930 respond to this situation?
Voters who had favored the republicans when they voted Hoover in hoping he would bring the country to wealth went back to the Democrats which gave them more seats in Senate allowing them to bend the vote to their favor.

8. What did Hoover do about the economic situation?
Hoover still refused to support anymore federal welfare, the people were upset by this saying that he was the reason the country wa starving.

9. How did the economy respond to his efforts?
As much as Hoover did like fixing the banks to start to scrape away at bankrupcy the people saw that it was yet to turn the economy around.