Six Causes Of The Great Depression

There were six major causes of the Great Depression. The six major causes were industries, agriculture, consumers having less money to spend, an uneven distribution of income, the stock market, and bank failures. The president at the beginning of the Great Depression was Herbert Hoover. Hoover’s philosophies were that the government should encourage competing groups to cooperate with each other and society’s interests. Hoover was also against providing federal welfare or direct relief to the people. Hoover believed that giving federal welfare or direct relief would cause a decrease in the people’s self-respect and “moral fiber.” In 1932, Franklin Delano Roosevelt became the 32nd president. Roosevelt created the New Deal which focused on the

One program that helped reformed the foundations of the economy was the Federal Deposit Insurance Corporation. According to the textbook, “The FDIC provided federal insurance for individual bank accounts of up to $5,000, reassuring millions of bank customers that their money was safe.” This is important because banks invested the people’s money, so when the people wanted their money back during the depression, all the banks would fail. By establishing the FDIC, people would feel more comfortable in depositing their money in the banks and the banks would be able to reopen. Another program that helped reformed the foundations of the economy was the Agricultural Adjustment Act. The textbook says, “The Agricultural Adjustment Act (AAA) sought to raise crop prices by lowering production, which the government achieved by paying farmers to leave a certain amount of every acre of land unseeded.” This is important because there was a great demand for crops in European countries during World War II. After the war, the demand for crops plummeted and farmers continued to increase their production of crops in hopes of earning more money, which caused prices to drop 40%. This caused farmers to lose their lands when they could not pay their mortgages and loans. By creating the AAA, the farm prices increased and farmers earned more money. The third program that helped reformed the foundations of the economy was the Civilian Conservation Corps. According to the textbook, “... the Civilian Conservation Corps (CCC), put young men aged 18 to 25 to work building roads, developing parks, planting trees, and helping in soil-erosion and flood-control projects.” This is important because teenagers traveled on freight trains around the country to search for jobs and escape poverty. By forming the CCC, teenagers received a $30 payment every month and $25 for their families. They also had free food,