There were several causes of the stock market crash of October, 1929. Stock prices were over valued. People bought stocks using credit, so stocks were being bought with money that wasn't really there. Some people said that stock prices were going to be permanently high. There was a lot of over-speculation about stocks during the 20's, stock prices were rising because people wanted them so badly. Goods weren't selling and stock prices were still too expensive. Uneven distribution of wealth pretty much meant the rich got richer and the poor and middle class went into debt.
There were also several causes of the Great Depression. The stock market crash was a major contributor to the Great Depression. I think the fact that over 9,000 banks failed, and people lost their savings because the bank deposits were uninsured, was one of the major causes. People started spending less, people lost their jobs and couldn't afford to pay for things. Unemployment rose above 25%. The depression effected Europe with the Smoot-Hawley tariff, which charged high taxes on imports which caused less trade between America and other countries.
Herbert Hoover was a huge believer in letting businesses do as they please, but this proved not to help the depression. He tried to relieve the depression by getting different groups to negotiate agreements. The Farm Board was supposed to raise crop prices by buying crops and keeping them off the market until prices rose. He also tried lowering mortgage rates. I personally don't think Herbert Hoover was a very good president, but he did what he thought was necessary. It just didn't turn out that good for him.
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Comments
Good but a tad short overall.