Cause And Effect Essay: What Caused The Great Depression

Herbert Hoover, the president in office when the Great Depression hit the country, did very little to ameliorate the devastating situation. Hoover underestimated the seriousness of the crisis, misdiagnosed the causes of the problems, and clung to his beliefs in individual achievement and self-help. His corrective measures, aimed at inflation and the federal budget, were thus damaging themselves. Furthermore, he hesitated to mobilize government resources to aid Americans and instead appealed to private groups to lend a hand (Encarta). Thus Hoover’s administration did little to mitigate the impact of the Depression.

The Great Depression started in 1929 and lasted up until 1939. It happens to be the worst economic downturn for the United States and the the rest of the world. It caused companies and corporations to eventually go bankrupt as well as workers to be laid off. Another effect of The Great Depression is that factory production was reduced, and the banks started to shut down. In the lowest point of The Great Depression in 1933 nearly 15 million workers in America were unemployed and one half of the banks started shutting down.

The Great Depression was caused by the stock market crash in 1929. The Great Depression was very sad time for Americans, who faced many adversities which ultimately changed the way they lived. During this period of time unemployment rose to nearly 25% of the population, those who did not lost their job saw a dramatic decrease in their pay.

There are some main causes The great depression, first in 1934 per week They made $ 4.80 per week and They paid $ 3 by The incomes of Their Homes, all that happened to Birmingham Alabama in 1934, in Chicago everything rises for The men and The women for the food , And then spent $ 1.10 that was spent on food in stores, The three cases are The three cases were The financial downfall, low wages, and unemployment.

Historians argue what caused the Great Depression, some say it was due to the stock market, others say it may be the war debt or overproduction. To believe the Great Depression was caused by only one event is naive. It was caused by a multitude of problems that the government failed to fix.

In summation, we can accurately conclude that the policies of the President Herbert Hoover administration were insufficient to the recovery of the failing American economy during the Great Depression. He had a lack of success due to the ineffectiveness of his programs (as they did nothing to help the country), the untimeliness of the programs (being too deep into the years of credit contraction), and the failure to establish welfare and relief to those in

In 1929, the stock market crashed, and afterward the Great Depression began in the United States. The stock market was not the only cause of the Great Depression, there were social, political, and economic factors throughout the 1920s that were responsible for the economic downfall. According to Eric Foner, author of Give Me Liberty: An American History, the 1920s was the beginning of American consumerism, which is a social factor that led up to the Great Depression (783). Foner comments, “consumer goods of all kinds proliferated” (783).

There were easily multiple causes for the start of the Great Depression in 1929. Many historians and economists put emphasis on organizational causes such as actions by the Federal Reserve. Often part of any business cycle are recessions due to the changes of supply and demand, but what turns this business cycle into a depression is always up for debate. In the case of the Great Depression, the stock market crash of 1929, bank failures, debt deflation, and American economic policies with Europe

During Herbert Hoover’s administration any mistakes were made after the Stock Market crash. After the crash during the depression Hoover took action but made a few mistakes along the way. Many of Hoover’s acts were passed by congress and signed by Hoover himself. His worst offense was the Smoot-Hawley Tariff, which raised tariffs. The raising of tariffs was the worst possible thing that could have occurred. Hoover tried his best to reassure the country that the economy would become improved, although it actually worsened. To improve things after the crash Hoover prepared all Federal Departments to speed up public works. He did this with hopes to generate supplementary jobs and bring back the economy. As well, Hoover asked congress if they would reduce spending, and use what was no longer required to restart public works. Unfortunately for Hoover a collapse in Europe and a change in foreign trade caused prices for United States manufactured goods and farm equipment. After this occurrence President Hoover asked congress once again for more money, his time he wanted the money for farm loans and to establish the Reconstruction Finance Corporation, which would be used to help buildings in need as well as banks and railroads. With all of Hoovers efforts by July 1932 the Depression began

Many people lost as much as ten times their initial investment, which shook consumer confidence. In an effort to cover their margins, people rushed the banks in masses, demanding their money. Soon, banks began to run out of cash and went bust.

Since the beginning of the Industrial Revolution early in the nineteenth century the United States ad experienced recessions or panics at least every twenty years. But none was as severe or lasted as long as the Great Depression. Only as the economy shifted toward a war mobilization in the late 1930s did the grip of the depression finally ease.

In the 1920s, American economy had a great time. The vast majority of Americans in 1929 foresaw a continuation of the dizzying economic growth that had taken place in most of the decade. However, the prices of stock crested in early September of 1929. The price of stock fell gradually during most of September and early October. On “Black Tuesday” 29 October 1929, the stock market fell by forty points. After that, a historically great and long economic depression started and lasted until the start of the Second World War. The three causes of the Great Depression are installment buying, uneven distribution of wealth and the irrational behavior in the stock market.

Many people think that the Great Depression was caused solely by the stock market crash. Anybody who tells you this probably didn’t pass U.S. History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of wealth, protective tariffs, and the four “sick industries” of the 1920’s.

The banking industry as a whole after the stock market crashed was going bankrupt due to not being able to carry the “bad debt” that was created from using customer money to buy stock. Because the banks were out of money, they were unable to cover customer withdrawals from their bank, causing many bank customers to lose all of their savings. With the uncertainty of the future of the banking industry, many people withdrew all of their savings, which caused more than 9,000 banks to close their doors and go out of business (Kelly). Due to the effects of the Great Depression, and the collapse of the banking industry, the government created regulations to prevent similar failure in the future. For Example, the SEC, (or Securities Exchange Commission), which regulates the sell and trade of stocks, bonds and other investments was created as a result of The Great Depression. The FDIC (or Federal Deposit Insurance Corporation), was created to insure bank accounts so that that the consumer would be protected if the bank were to go out of business (Kelly). The Great Depression's effect on the banking industry led to many useful changes to the banking industry and helped restore confidence in banks in the American people.

There are many various causes of the Great Depression but historians believe the greatest contributor was the stock market crash of 1929 . On Black Tuesday October 29 stockholders lost more than 40 billion dollars , everyone panicked and sold their shares all at once leading to a massive collapse. This affected everyone all around the world. With the stock market crashing, people feared further economic woes so they stopped purchasing goods. As you could predict the reduction in items produced led to a reduction in the workforce