Causes & Early Effects of the Great Depression

1. What happened on "Black Tuesday"?
Black Tuesday was the day that the stock market crashed and 16.4 million shares were sold.

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)
Industry businesses weren't making any profit. Key basic industries such as railroads, textiles, and steel were barely making any profit. Mining and lumbering were in high demand also. After the high demand for crops during World War One farmers had too much crops and too much land producing food, causing them to be unable to pay their taxes and loans. As farmers incomes fell, they bought fewer goods and services. Because of this consumers were buying less, because of the rising prices and stagnant wages.

3. According to your reading, what are the major causes of the Great Depression?
The major causes of the Great Depression, the stock market crash, farming debt, the uneven distribute of income, living on credit, the failure, and the fact that key basic industries couldn't make any profit.

4. What was Hoover’s philosophy of government?
Hoover's philosophy of government was that one of the governments chief functions was to foster cooperation between competing groups and interest in society. This cooperation he said must be voluntarily rather than forced. Overall the governments general role was to encourage and facilitate cooperation, not to control it.

5. What was Hoover’s initial reaction to the stock market crash of 1929?
Hoover took a cautious approach to the depression after hearing about the stock market crash of 1929. Hoover called together key leaders in the feilds of business, banking and labor. His approach though really didn't make a difference.

6. What was the nation’s economic situation in 1930?
In 1930 the nations economic situation was worse.

7. How did voters in 1930 respond to this situation?
Voters in the 1930's responded to this worsened situation by turning against Hoover, blaming him for the increased problem.

8. What did Hoover do about the economic situation?
Hoover continued to hold onto his principles. He still refused to support direct relief or other forms of federal warfare. But then Hoover begins to back cooperatives. For example he backed the creation of the federal Farm Board, and tried to prop up the Banking System.

9. How did the economy respond to his efforts?
The economy was noticing that President Hoover was not helping anyone. The Reconstruction Finance Corporations lended out over 800 million dollars but businesses still continued to fail.