Causes & Early Effects of the Great Depression

Read Chapter 22-1 and answer the first 3 questions. Then Read Chapter 22-3 (yes, skipping 22-2) and answer the remaining questions. Post the questions and answers to your blog before class on Tuesday, Jan. 26. Title: Causes & Early Effects of the Great Depression Labels: Great_Depression, Hoover

1. What happened on "Black Tuesday"?
The stock market crashed on "BlackTuesday".

2. How did the economic trends of the 1920s in industry, agriculture, and with consumers help cause the Great Depression? (Make sure you include significant details about each area in your answer. It should be at least a paragraph)

Economic trends of the 1920's lay the foundation for the great depression to happen. Key industries like railroads and textiles made meager profits. Industries that had grown during the war like mining and lumbering had a much smaller demand. Coal mining was crippled with the introduction of new energy sources. Industries that boomed in the 20's the the automotive industry , construction and consumer goods dwindled. Agriculture suffered even more than industry. During the war the demand for crops was high but after the war the demand fell dramatically and the farmers overproduced. Many farmers who were in debt could not pay off their loans and had their homes and property seized. As a result of the unsuccessful farmers many rural banks failed. After the 20's, consumers did not have as much money to spend. Because prices had increased and many Americans had credit to pay off from the 20's they were buying less. Also production expanding much faster than wages led to a growing gap between the rich and the poor.


3. According to your reading, what are the major causes of the Great Depression?

according to the reading, major causes of the depression are declines in essential industries, declines in agriculture, declines in consumerism, credit and uneven distribution of incomes that related in the rich getting richer and the poor getting poorer.

4. What was Hoover’s philosophy of government?

Hoover's philosophy of government was that it was the government's job to foster cooperation between competing groups and interests in society. However the government could not force them to cooperate.

5. What was Hoover’s initial reaction to the stock market crash of 1929?

Hoover's initial reaction to the stock market crash of 1929 was to call together key business leaders and urged them to work together.

6. What was the nation’s economic situation in 1930?
In 1930 the economy was in bad shape. Many people were out of jobs and homeless.

7. How did voters in 1930 respond to this situation?
They elected democrats into congress.

8. What did Hoover do about the economic situation?
Although he did call for the construction of the boulder dam, meant to boost california's agricultural economy, Hoover refused to let the government step in and support welfare programs.

9. How did the economy respond to his efforts?
His efforts made little difference in the economy leading people to become frustrated.