Causes of the Great Depression
Causes of the Great Depression
Calvin Coolidge was not going to run for president for another term. So the Republicans nominated Herbert Hoover. The Democrats nominated Alfred E Smith. Hoover had six million votes and won the Electoral College it was 444 and Smith had 87 votes. When Hoover took office the stock market prices had gone up. The bull market is the rising of stock market prices for a long time. The bull market had convinced many people to invest in the stocks. Many would put a little bit of money in the stocks. Whenever the stock prices had gone up the investors would start to make money. If they chose to sell they would make more money then what they bought them for. Brokers could call for margin call to make the investors repay the loan all at once. Some investors were hoping for speculation. They were hoping that the market would grow again. When the market fell people sold stocks for less than what they paid. The week after the stalk market prices dropped and dropped even more they called it Black Tuesday. Close to 16 million of the stocks were sold and lost form $10 to $15 billion dollars. Banks also tried investing money into the stock market so it would rise again. Banks were forced to close after they had loaned $6 billion to stalk market buyers. Banks had to quit giving out loans since the stock market had collaped.
During the Great Depression people were able to use machinery which would increase crop production. Then there was an overproduction of products that were made in factories or farms. The farms produced food for Europe and the United States. Some farmers still kept operating taking out loans thinking that the stock market would soon rise again. Since the stock market had dropped people were not able to afford to buy the products. At this time Americans could also purchase refrigerators and vehicles and could have installment plans which helped them buy the products with down payments.
Life During the Great Depression
· During Hoover’s administration 9,000 banks closed in 1933. Around 12 million people were unemployed. The unemployed were not able to pay for their food so many soup kitchens opened. Also court officers also known as bailiffs made people who could not pay for their rent move out of their homes.
The Dust Bowl typically refers to the environmental disaster. In mid-1930s when farmers plowed the wild grass that helped hold moisture into the soil. Many farmers left the ground uncultivated because of the prices of the crops dropped. Because of the farmers had cultivated the ground and there was not much moisture in the ground the wind blew blowing the topsoil creating a huge dust storm. The dust storm affected 150,000 miles of land in the panhandles of Texas and Oklahoma, also parts of Colorado, Kansas and New Mexico. The dust was so thick that the sky was dark and covered animals and crops. This killed the plants and sufficated the animals because they had so much dirt in their lungs.
During this time people would use comic books, radios, movies for entertainment. Some of the most famous stars were Shirley Temple and Jackie Coogan. Some adults and children liked cartoons and Disney Movies. Walt Disney created Mickey Mouse which is animated films. People also read and wrote books about their unemployment and had pictures too.
Goverments Response to the Great Depression
President Hoover tried to convince businesses that the stock market was at the worst. Thinking the public would not be so worried. He was wanting banks to stop running and lying off employees. The public was not as worried about the stock market like Hoover was. Hoover tried to find new ways to make the stock market go back to normal. The public helped the businesses to get started since Hoover did not want to use government money. Then Congress created the Reconstruction Finance Corporation which would let businesses take loans out. Hoover also tried to help the people by using relief which money was given to the poor. This relief was only given out by the state and the local government and charities that were having hard times to get through this time. Hoover signed a bill to give $1.5 billion to public workers and $300 million to emergency workers.
Many hungry people marched around grocery stores wanting food and water. Since many of the poor started to buy goods again the agriculture market sky rocketed. Many farmers took out loans to buy land, seed and equipment to grow the crop. After the war the market went down which forced farms to foreclose close to one million farms during 1930 to 1931. The crops were 80 cents in 1928 then went to 60 cents. Many people gathered to march from Oregon to Washington many veterans also joined this march. This march was called the Bonus Army. The marchers stayed at Hoovervilles. Hoover forced the marchers to leave the area. Hoover had failed to get the stock market to back to normal.
Used in all sections:
Oldham. The American Vision: Modern times. Columbus, OH:
Glencoe/McGraw-Hill, 2010. Print
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"Hooverâs Response to the Great Depression." Hoover's Response to the Great
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