Causes & Early Effects of the Great Depression

1. What happened on "Black Tuesday"?
People who had bought stocks on credit went in debt because the prices plummeted.

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)
New inventions such as hydroelectric power,fuel and oil, and natural gas took place of coal and lumber mining. Railroads lost profit because cars and buses were being built. During WWI prices rose and farmers were taken out loans to buy more tools to harvest more grain because people needed more grain. But the farmers were going in to debt because they could not pay off there loans and they were making more crops than they could sell.

3. According to your reading, what are the major causes of the Great Depression?
Tarrifs and war debt polocies that would cut down foreign markets for American goods.
A crisis in the farm sector.
The availability for easy credit.
An unequal destribution of income.


4. What was Hoover’s philosophy of government?
Hoover's philosophy was that Americans have to take care of themselves and there families and not depend on the gov. to bail them out by giving them loans.

5. What was Hoover’s initial reaction to the stock market crash of 1929?
Hoover's reaction to the stock market crash of 1929 was that he needed to help the Americans but he could not solve the economic problem.

6. What was the nation’s economic situation in 1930?
The economic situation was the Great Depression.

7. How did voters in 1930 respond to this situation?
People went to durastic measures to make the gov., stores, and bussiness increase there prices by burning crops, dumping milk on the sides of roads, some people refused to work, and people blockaded roads so no food could be transported in or out of towns.

8. What did Hoover do about the economic situation?
Hoover did what the American people wanted him to do and that was that he would lower the prices. He did this by making the Federal Home Loan Bank Act and the Recon
struction Finance Corporation which failed.

9. How did the economy respond to his efforts?
The economy did not change as quickly as it should of. The smaller bussinesses would not recieve the money from the larger bussinesses until it was too late.