Hoover As The Main Cause Of The Great Depression

Hoover becomes president of the United States and enters office during one of the largest economic expansions in history. He promised in August, 1928 that he would lead near to triumph over poverty, fifteen months later, the nation plunged into the most severe and prolonged economic depression in the world.

The main general cause of The Great Depression was the monetary and material distribution process broke down. Money stopped circulating causing wages to go down and unemployment, so not many people can afford to buy goods. The first thing you do is to give up your wants. Due to the shortage of money to buy products results in lower consumption of goods, which makes the economy to slow down.

By the 1920s there was a lack of diversification

As the wealthy manufactures take a hit, they start to lower the wages for their jobs. Farmers start to over produce their goods.

Consumers start buying on credit and as a result people can’t purchase anymore. The credit stock binds goes up. People started to sell their debts but since everyone was selling at once nothing was being sold. The Great Crash wiped out all stock gains from previous years, so most investors would wait their entire adult years to see their investors break even. American

proposition on international trade and international debt structure was another main cause.

Europe puts a tariff on the United States’ response, so we put a tariff on them because of the international trade was already hurting. The United States refuses to forgive any any debts, so instead the U.S banks lends money to Europe to pay back. The loans get replaced with greater debts; international credit collapses.

The Great Depression hit differently at different parts of the country. For example, in some poor cities it really did not make a difference. The hardest hit during the depression was on urban manufacturing employers and farmers. Over 9,000 banks shut down or

Their GFI declined 60% by 1933. A third of all families had lost their farms. From 1930-1933 was a terrible drought known as the Dust

Bowl. President Hoover had acted way too little way too late. He believed that the economy will right itself any day now. Tremendous amount of the population starts to protest. For the election of 1932, Hoover was running up against F.D.R, and lost. Franklin D. Roosevelt had run for four terms and died halfway towards the end of his last term. Franklin was a democrat from New York, he did not took office until the year 1933. He had followed the exact plan to power as his cousin Theodore Roosevelt. He had power over the houses but not the Supreme court. The problems he had to face in society were unemployment, he wanted to get people to go to work, to start consuming again. He wanted to restore the people’s trust on banking

systems. Another problem he had to face was the lack of regulation on the stock market, his idea was to set rules, control over buying and selling. The last problem to face was public confidence. People were dispirited, so he wanted to change their negative thoughts.

The 100 days and the First New Deal was the gear toward relief and