The Great Depression : The Causes Of The Great Depression

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The Great Depression to place in the 1930’s, wreaking havoc on America’s economy. It cause unemployment, poverty, homelessness, and a loss of a lot of money, including people’s life savings. Many things lead up to it, but one of the main ones was the stock market crash. People believed that the stock market was as stable as could be, but it was very inflated and it crashed. People invested a lot of their savings into stocks as what was considered a smart move, yet as corporations reached their limit, everyone pulled their money which caused it to crash. The release of “one-time buy” products also lead to the crash, because people would buy new products you only needed one of, and once everyone had them, companies didn’t sell as much, therefore making less money, therefore forced to cut costs, which meant laying people off. This is what lead to the high unemployment rates. People blamed this depression on the president at the time, Herbert Hoover. They ridiculed him, by calling shanty shacks hoovervilles and leaving their empty pockets inside out, calling them hoover flags. The public was more than happy when Franklin D. Roosevelt came into office. All that American denizens wanted was to make it out of the hard times, make changes in the government, and get help from them. Unlike Herbert Hoover, FDR took a more hands on approach, giving direct aid to the public. Hoover believed in rugged individualism, expecting that people should be able to work together and get through

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