Causes & Early Effects of the Great Depression

1. What happened on "Black Tuesday"?
On Back Tuesday, the market dropped and the shareholder's dropped a record number of 16.4 million stocks. People who were stucks with stocks were often left in huge debt.

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)

Railroads lost a lot of money because people now used buses and cars more frequently. Coal mining was also not needed as much because there was new advances in hydroelectric power and natural gas. Also, one of the most important ones was that the number of houses being built was declining rapidly, which made many people lose any jobs relating to housing, such as manufacturing and lumber companies. Farmers also foretold a great depression because after demand for wheat and corn fell after World War I, farmers found that they had too much crops and loans that they couldn't pay off. Americans were also buying less because prices were rising and they found that they didn't have a lot of money.

3. According to your reading, what are the major causes of the Great Depression?
The major causes were farmers taking loans that they couldn't afford, people buying less because they were losing jobs and had less money, and the sudden drop in use of railroads and mining.


4. What was Hoover’s philosophy of government?
Hoover believed that the government shouldn't control, but find peaceful solutions and find mutual solutions between business and labor.


5. What was Hoover’s initial reaction to the stock market crash of 1929?
He thought that to doubt the future economy's success was foolish and people should just go about their lives as if nothing is happening.


6. What was the nation’s economic situation in 1930?
In 1930 the situation was as bad as ever, with farmers even refusing to selling their crops and some even burning them.
7. How did voters in 1930 respond to this situation?
When president Hoover's time as president was up, the people voted against the republicans and into the democrats favor.


8. What did Hoover do about the economic situation?
Hoover built the Boulder dam, his one great acomplishment. It would help make electricity for the US people.


9. How did the economy respond to his efforts
The People started seeing Hoover as evil and was eager to get Hoover and his republican ideas out of office. The homeless started calling the newspapers that they used as blankets "Hoover blankets" etc.