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How Did The Great Depression Affect The Economy In The 1930s

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President Herbert Hoover, like the majority of the elected Senate in 1928, was a Republican and believed a protective tariff was a “fundamental and essential principle of the economic life of [the] nation.” The 1920’s was characterized by economic prosperity and a boom in capitalism, but on October 24, 1929,seven months into Hoover’s four year term, protectionism would be tested by the stock market crash. Prior to the crash, the US economy was considered to be in recession;“ a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.” A depression is more severe than a recession and lasts through multiple business cycles. The Great Depression in the 1930s is synonymous with high unemployment, massive bank failures and a continuing nosedive in GDP. In response to the recession, Protectionism, a policy in which the competition from foreign trade is …show more content…

Hoover himself said, “If we were not prosperous and able to buy, the rest of the world also would suffer.”Furthermore, the US ignored the advice of the League of Nations, which proposed a “tariff Truce,” In September 1929, the high tariffs of the Smoot-Hawley were protested by 23 trading partners of the United States, all of whom were members of the league. Canada, a historic trading partner of the United States who had recently reduced tariffs on imports, was infuriated by the US’s Tariffs. In response, Canada more than tripled their taxes on eggs imported from the US This resulted in the US’s exports of eggs dropping by Other countries followed suit, raising their own tariffs so that their goods could compete. Not only did this hurt American exports short term, it contributed to the collapse of world

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1930’s The Great Depression The Great Depression was the largest economic depression of the 20th century, and is commonly used today as a measure of how far the world’s economy can decline. The depression started in the U.S in 1929 with the Wall Street stock market crash (known as Black Tuesday). This eventually spread globally and affected the economy of many other nations throughout the 1930s. Canada was greatly affected by this as Canadian industrial production fell to 58%, the second lowest level after the United States.

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Herbert Hoover was our 31st president of the United States of America. He became president right at the start of the great depression. Herbert Hoover had to figure out how to get america back onto its feet again. Herbert Hoover changed how he was going to fight the war against The Great Depression. He called for more Federal Assistance stating that's what they did to win the war and it was what they will do to win the war against the Depression.

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The wealth during the 1920s left Americans unprepared for the economic depression they would face in the 1930s. The Great Depression occurred because of overproduction by farmers and factories, consumption of goods decreased, uneven distribution of wealth, and overexpansion of credit. Hoover was president when the depression first began, and he maintained the government’s laissez-faire attitude in the economy. However, after the election of FDR in 1932, his many alphabet soup programs in his first one hundred days in office addressed the nation’s need for change.

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Hoover was not interested in the affliction caused by the Great Depression. In fact, people’s way of life started deteriorating as they had no support from the government. His inability to face national upcoming crisis was a mistake to the US economy and the way down to massive depression. Hoover marked into law the Smoot-Hawley Tariff Act, which prompted an emotional decrease in global exchange; and also consenting to impose increments on homes, organizations, and checks. His business profession, and individual convictions, made him ill-suited to giveaway effectively with a monetary calamity as desperate as the Great Depression.

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Some states instituted policies that placed tariffs on imports from other states, causing conflict amongst each other. The federal government’s inability to regulate trade between states and foreign nations would put the country into a disorganized and counterproductive economy. In addition to the internal issues, it posed the threat of countries such as England and France

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Life is not always about good days and but sometimes bad days are possible in life. After the great wars, the United States enjoyed 10 years of flourishing life after the great war. This period Known as the boom period or return of normalcy was a period of uninterrupted wealthy living and also overspending. This wealthy living and overproduction led to hardship in the 1930s. These Acts led to the worst economic failure in the history of in United State of America.

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The Great Depression is the worst economic downturn that America has ever experienced. Over a ten year period lasting from 1929 through 1939, America witnessed hardships like no other. At the lowest point in the Great Depression nearly 25% of Americans were out of work, and that rate increasing by twelve thousand every day. The Great Depression made many people question the “American Dream” and people were weary of the future. Many effects came out of the Great Depression, one being more government programing.

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The Embargo Act caused an increase of financial loss for America because of this on March 1, 1809 the Embargo Act was replaced with the Nonintercourse Act. The mistake made was that Jefferson thought if he placed the act then everyone would come to their senses and good trade relations between the three countries would be restored. We have learned that we should leave the economy how it is from our past

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Before the early twentieth century, Americans either swayed republican or democratic, but as the country reached the 1900s liberal and conservative ideals surfaced into many citizens’ mindsets. Liberals were people with modern ideas and believed that in order to better the American society, there needed to be room for change. Conservatives, however, believed in tradition and had strong beliefs on sticking to the original way of life in America. President Herbert Hoover, who was seen as a conservative, was elected in 1929. Under the republican party, many Americans liked him because he worked his way to the top.

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The Great Depression was a time during 1929 to 1939, It was the longest lasting economic disaster. The two presidents in term during this crisis, Franklin D. Roosevelt and Herbert Hoover, approached this problem in different ways. Hoover’s idea on this was to have private citizens help each others, while Roosevelt believed the government should take care of its people with social programs. Looking at these ideas in more depth we can infer ways our country should go. Herbert Hoover served as president during 1929 to 1933.

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“We had home remedies for illnesses and made our own soap for washing. Every penny counted. Nothing was ever wasted.”- Madge Conti Browning. Families changed drastically during the 1930’s, some for the better, others for the worse.

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The Great Depression was a major turning point for the United States’s economy because it changed the relationship between the government and the economy. Before the Great Depression, the economy was a Laissez-faire style market where the government had no influence on private party transactions and businesses. After the Stock Market Crash of 1929, the people of the United States sought for reliefs from the government. The Government responded by creating tax reforms, benefiting the stock market, wheat prices, employment, and the number of bank suspensions, and providing comfort for the people. As a result of their disparity, the people put their trust in the government in hopes that they would repair the broken economy.

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Maybe people care a lot about what other people think; or, maybe they just do not care at all. Some people live by what other people want or think is “normal.” Other people live the way they want to live and do not care about the things other people want them to be. Women tend to struggle with this alot. Stereotypes, inequalities, and politics were not things women in the 1930s wanted to live by; although, they managed to make it better for themselves through political action over time.

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In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.

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The Great Recession started for the United States in December of 2007 and lasted until June of 2009. This was the worst recession in U.S. History since World War II. During this time, there was a 6.1 % loss in jobs, due the job shortages about 27 million people we either unemployed or underemployed. This affect the age household many people household income dropped increasing the poverty in America. In economics, a recession is a decline in economic activity affecting Gross Domestic Product or GDP for at least two consecutive quarters causing negative economic growth (Downes and Goodman).

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