The causes of the stock market crash of 1929. One of the causes was an agriculture recession. This was caused by better technology so they could produce more food. The need for the food didn’t increase at the same rate though. Secondly there was a boom and bust which meant that people were buying shares and expecting to them to keep going up so they could make money. Another is mismatch in production and consumption this means that companies were struggling to sell there products. This is also called inequality because economic growth is not evenly distributed. The last reason for the stock market crash was a weakness in the banking system they were going bankrupt due to the agriculture recession and buying on margin.
http://www.economicshelp.org/blog/76/economics/wall-street-crash-1929/
Causes of the great depression. The stock market crash of 1929 was a major factor in causing the depression. Stockholders lost a total of 40 billion dollars. Another reason is bank failures about 9,000 banks failed and people lost saving because of this and surviving banks gave out few loans. Reduction in purchases across the board this means people stop buying goods and goods bought on installment planes were being repossessed. Another reason was businesses were failing because of the lack of buyers for the goods. The dust bowl was a cause of the depression. It was a dry spell that forced people to sell farms for no profit for themselves.
http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm
Hoover takes action. In 1930 Hoover created many projects to try and jump start the economy. One project was called the Boulder Dam it call for the building of a dam now called the Hoover Dam. Congress approved $800 million for these projects. He also proposed a radical revision of the banking system. Another thing he did was to call business leaders to the white house and urged them not to lower wages and he told Americans to believe in there economy. Hoover would spend money to help farmers buy fertilizers and seed. He refused to give wheat to unemployed who were hungry though.
Comments
Good but you are missing some things that Hoover did as president.