The Great Depression By Herbert Hoover

1445 WordsMar 7, 20166 Pages
The Great Depression, beginning in 1929, was a time when the world’s economy rapidly collapsed and majorly affected several continents. This ‘depression’ lasted until around 1941, and throughout that time, most people were focused on North America, mainly the United States, but other continents, such Latin America, also witnessed this great tragedy. For the United States, the Great Depression was one of the most profound economic decrease in its history. Several reasons contributed to this great calamity, such as overproduction, banking and money policies, and stock market practices. Overproduction was when food and products were being made, but no one could afford to buy them. The soon-to-be President of the United States, Herbert Hoover, was the federal government’s food administrator at the time and he started by ‘encouraging’ the farmers to grow more food, so that the United Sates could provide some to their allies in Europe. The conflict was that though the Europeans did need the food, but they did not have the money to purchase the food. Throughout the 1920’s the U.S. President at the time, Calvin Coolidge, paid no attention to the situation of the over worked the under paid farmers. Since the farmers made no money, they could not buy the equipment they needed, which led to them having to take out loans from the bank. Eventually, the farmers fell into serious debt and could no longer pay the banks back. Without the banks receiving the necessary money to continue
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