Causes & Early Effects of the Great Depression

1. What happened on "Black Tuesday"?
On Black Tuesday the stock market crashed and people began to sell all their stocks before prices dropped even lower. People were stuck with debt and with nothing to repay it, and others lost all of their savings.

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 economic trends of the 1920s in industry helped cause the great depression because many industries were not preforming well. There were some that during the war had done very well, and now were no longer needed, and others that just were not doing well. The agriculture helped cause the Great Depression because people did not need as much food after the war, and prices dropped significantly. Consumers helped cause the Depression because they did not have enough money to spend on goods and prices were increasing.

3. According to your reading, what are the major causes of the Great Depression?
The major causes of the Great Depression were over production, low wages, paying with credit, and lack of consumption.

4. What was Hoover’s philosophy of government?
Hoover's philosophy of government was that it should cause cooperation between competing groups in society. In other words that the government should make compromises for the groups that argued.

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 try to get the leaders in the American economy to try to work together and keep wages and such at there current place and demand no more or less of them, this didn't help. He also created the Hoover Dam which did somewhat help the economy.
6. What was the nation’s economic situation in 1930?
In 1930 the nation's economy was shrinking, unemployment was increasing, the number of homeless was rising, and shantytowns were popping up everywhere.
7. How did voters in 1930 respond to this situation?
Voters responded to this in 1930 by voting the Republicans out of Congress and voting anti-Hoover Democrats in.
8. What did Hoover do about the economic situation?
Hoover supported and helped create many cooperatives, and started to intervene directly in the form of 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 did not respond at all to his efforts and if anything, kept getting worse than it already was.