Causes of the Great Depression
1. Stock Market Crash of 1929:
It all started on Black Tuesday, October 29, 1929 when the stock market had its first crash. After only two months from Black Tuesday stockholders had lost over $40 million dollars. The stock market went up slowly by 1930, but not fast enough so America started the Great Depression.
2. Bank Failures:
Between 1930-1940 over 9,000 banks failed. The reason for the bank failure was that bank deposits were uninsured so that banks lost their money and people didn't have their savings anymore. As a result of all the banks failing the ones that didn't want to fail so they weren't as willing to create new loans for some people.
3. Reduction in Purchasing Across the Board:
Which means that people in all classes were scared about the economy and just wouldn't purchase as many items. Then supply and demand went into effect, by less demand businesses made less items and didn't need as many employees as a result (unemployment rate was over 25%). The firing of so many employees made people unable to buy items ultimately hurting the US economy a lot.
4. American Economic Policy With Europe:
As a result of all the business failures the government made the Smoot-Hawley Tariff that raised taxes on imports really high in hopes of protecting American companies. They hoped this tariff would make more business in the US happen instead of business with foreign countries to try and help the economy.
5. Drought Conditions:
Was when there was a drought in the Mississippi Valley in 1930 caused people to not be able to pay taxes or other debts making people sell their farms to pay for them. The nickname for the area affected by the drought was called the "Dust Bowl".
Opinion: I think that there were just to many bad things that were happening in America right after WWl that ultimately caused the Great Depression. I can't believe that the unemployment rate was over 25% during the Great Depression. I mean wow that's really high.
Causes of the Great Depression Source
Social and Psychological Effects
During the 1920's people thought that good things or success happened to people who deserved it. This theory brought a big blow because of all the unemployment and people thinking they didn't deserve it. Since people beleived the theory thought it was all their fault causing a lot of self-blame and self-doubt among America. Due to the unemployment the government stepped in to try and help it making men feel humiliated needing the government's help because they thought that they were self-sufficient for there families.
Opinion: I found out the theory that people believed was true during the Great Depression era. I think i would agree with some parts of the theory, but i think it has some flaws like it's not their fault for some of the unemployment.
Source-The Americans Reconstruction to the 21st Century (book)
Social and Psychological Effects Source
Hoover's Background
Herbert Clark Hoover was born on August 10, 1874 in West Branch, Iowa. He was the first and only Iowa president (31st) so far and was also the first president born west of the Mississippi River. His parents, Jessie and Hulda Randall Hoover were both quakers, and Jessie was a blacksmith and farm implement store owner. Both of Hoover's parents died when he was nine making him a orphan then causing him to have to live with various relatives and friends. Surprisingly Hoover never went to high school, but learned bookkeeping, typing, and math at night school. Sadly Hoover died on October 20th, 1964 living to be 90 years old living a full life.
Opinion: I never knew that Hoover was an orphan at age 9, i think that would be really hard. At least he lived a full life to age 90 and being president. I also didn't think his parents would be quakers.
Comments
A bit brief of Hoover's background but good overall.