Causes & Early Effects of the Great Depression

1. What happened on "Black Tuesday"?
On black tuesday the stock market completely crashed and then people tried to sell all their stocks and it just made the market drop even more.


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)
The industries in the 1920's were not performing well, and agriculture helped because they didnt need to supply the troops anymore so the crops were not getting bought. THerefore the prices dropped, and Consumers helped because they did not have the money to buy the products which prices kept going up.

3. According to your reading, what are the major causes of the Great Depression?
The major causes of the Great Depression were credit cards, not big enough salaries and wages for workers, and over production of things when people weren't using them.

4. What was Hoover’s philosophy of government?
Hoover believed that government should make competing groups cooperate.

5. What was Hoover’s initial reaction to the stock market crash of 1929?
Hoovers initial reaction was to get the leaders of the economy to keep wages the same and get them to work together, but this did not work. The hoover damn was also created.

6. What was the nation’s economic situation in 1930?
The nations economy was becoming worse and more people were becoming unemployed. Also the number of homeless people was rising.

7. How did voters in 1930 respond to this situation?
Lots of the republicans were voted out of office and many anti-hoover Democrats were voted in.

8. What did Hoover do about the economic situation?
Hoover helped make lots of cooperatives and also created the Federal Home Loan Bank Act, the Glass-Steagle Banking Act, and the Reconstruction Finance Corporation.

9. How did the economy respond to his efforts?
The economy just got worse and worse.