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The Long-Term Causes Of The Great Depression

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On October 29th, 1929, the hugest stock market crash befell in American history which is as known as Black Tuesday. It triggered the final consequence under the unstable society and lead to the Great Depression. The Great Depression was a period time from 1929 to 1939 when American was in its deepest economic downturn in history. Consumer spending and banks were two of the long-term causes of the Great Depression. Prices of necessary kept rising, but people’s wedge stayed the same. People could not afford their daily supplies and were facing to starvation. Many banks closed because people did not trust banks to put their money in. When banks closed, business did not get loan to keep opening, so the economy became like stagnant water. In the early 1928, Hoover was elected to be the 31st president of the …show more content…

When the Great Depression first occurred, Hoover responded to not interrupt because of his three beliefs: rugged individualism, voluntary cooperation, and the cycle of economic. He asserted that the government should not interrupt businesses and people’s lives. It was not government responsibility to take care of people who were disabled, elderly, or unemployment. He firmly believed it is economy’s nature to have upturn and downturn. His waiting and doing nothing plan has finally pushed American to its worst depression. In 1932, FDR got elected, and he believed that reform, relief, and recovery were the steps to save America’s economy from its depression. He approved every program and laws, known as the New Deal, to help American people. The New Deal was a success due to its efficient economy recovering results and

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1031 Words | 5 Pages

Great Depression DBQ On October 29, 1929, the stock market crashed and thousands of lives were changed and millions of dollars were lost. It came to be known as Black Tuesday, the day when the stock market dropped incredibly and life was never the same. On the 24th of October, the market dropped a little, but on the 29th, the market crashed completely. Americans were scared and in disbelief, so they rushed to the bank to claim their money before their life savings were gone forever.

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Impact of the Great Depression The Forgotten Man: A New History of the Great Depression, written by Amity Shlaes, gives a lengthy detail of the Great Depression. According to her viewpoint the government handled the situation of the economic crisis very poorly, which led to the Great Depression lasting longer than it suppose to. In this book, Shlaes wrote about observed action taken by Calvin Coolidge, Herbert Hoover and Franklin D. Roosevelt. She gave a detail of the years from 1927 to 1940 and in the beginning of every chapter she mentioned the unemployment rate and the average of Dew Jones Industry.

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On October 29, 1929 the great depression had established a start. The stock market crashed and many people were laid off work in the next weeks. President Hoover believed that it was just a bump in the road for the people in america, but it turned out to be much more. As President Roosevelt came into office, he had to repair america from all chaos Hoover created.

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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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He comments, “Our citizens and our local governments have given a magnificent display of unity and action, initiative and patriotism in solving a multitude of difficulties and in cooperating with the Federal Government” (Hoover). Instead of discussing the actual issues of the Depression, such as the rapid increase in unemployment, Hoover choses to focus on the good. This upset the people, however. They wanted their president to acknowledge the severity of the situation and take action. The fact that Hoover did not see the Depression

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Herbert Hoover became the U.S president in the 1928 election and in 1929 stocks began to drop. Before he became president he was known for his organizational skill in the 1927 flood relief. Also Hoover made the committees to solve the problems but did not like to run them; he expected someone else to run it. In addition when it came to government spending Hoover was for engineering project but not humanitarian assistants. Hoover believed in limited government and it was that believe that make the depression worse.

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The Great Crash and the eventual Great Depression marred not only the American economy but sent ripples across global markets into ruin. As the stock market disastrously fell into pieces, two presidents were responsible for lifting the United States of America and its economy success. These two presidents, Herbert Hoover and Franklin Delano Roosevelt, constructed government policies and agencies to combat the rising unemployment and overall slump of the economy. Hoover’s lack of government funding along with poor reactions to public criticism and Roosevelt’s aggressive New Deal were solutions to an economy in desperate need of an answer.

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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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Nevertheless, Hoover did attempt to pull the nation out of the sinkhole it was falling into, he just used unconventional methods to do so. Instead of spending the government's money on direct aid, Hoover wanted the nation to help businesses flourish and to rely on volunteerism for neighborly support. When he was a young man, Hoover had to work his own way through college in order to get to where he was, and because of this he strongly believed that Americans needed to work hard for everything they received. His plans to pull the United States out of the Great Depression were not successful, and this made people believe that he didn’t attempt to find a solution at all. While the President did little to support the unemployed firsthand, he did try to improve the nation's economy as a whole because he believed that the nation's success depended on the strength of its business.

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The Great Depression in the United States essentially began on “Black Tuesday”, October 29, 1929, with the crash of the American stock market. The event sent a wave of panic through Wall Street, depleted consumer confidence, and plunged the United States into a severe economic downturn. Banks failed, companies went bankrupt and millions of Americans lost their jobs. Hoping that the economic crisis would be short-lived, President Herbert Hoover urged Americans to be patient and give the economy time to rebound. Although President Hoover fought to fix the economy, he did not believe that excessive federal government intervention was the solution.

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Millions had lost their jobs, their homes and they were hungry. The nation was in crisis and Roosevelt took advantage of this situation. During the 1932 presidential election, Franklin Delano Roosevelt promised a “new deal for the American people.” Roosevelt sent Congress several proposals to fight the Depression. These proposals collectively would become known as the New Deal.

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The difficult situation poor people faced was compounded by the fact that many had little to no savings to serve as a safety net. Those that had mortgages were unable to pay them leading to foreclosures and widespread homelessness. An insight into the world of the depression could be realized in a 1933 letter that current president Herbert Hoover wrote to Senator Simeon Fess recounting what he described were the first five periods of the Great Depression. In the letter, Hoover recounts widespread unemployment, destruction of public confidence, falling prices, and “general economic demoralization.” It is worth noting how Hoover handled the depression during his administration and the implications of his actions.

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In 1933, Franklin D. Roosevelt became the president of the United State after President Herbert Hoover. The Great Depression was also at its height because President Hoover believed that the crash was just the temporary recession that people must pass through, and he refused to drag the federal government in stabilizing prices, controlling business and fixing the currency. Many experts, including Hoover, thought that there was no need for federal government intervention. ("Herbert Hoover on) As a result, when the time came for Roosevelt’s Presidency, the public had already been suffering for a long time.

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America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.

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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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