Causes & Early Effects of the Great Depression

1. What happened on "Black Tuesday"?
the stock market crashed
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: Many industries that had been highly succesful for most of the twenties were biginning to decline such as coal which was losing a lot of bussiness to other forms of energy such as gas and hydro-electric power. Other intustries that had done very well during the war years and shortly afterward were also not doing so well for instence steel and lumber. The lumber industry was also declining because of a decline in the number of new houses that were being built, also referred to as a fall in the housing starts. This industries decline brought about many others and a huge shortage in jobs.
AGRICULTURE: Many farmers had done very well during the war and the demand for products such as wheat and corn had been high but when the war ended so did the high demandds and many of the farmers who had taken out loans in order to pay for large crops lost money. Many crops sufferred as much as a 40 percent decline in value and some even more.
CONSUMERS: Because of the loss of jobs and the increase in prices consumers were buying less. Another contribution to the consumers effect on the great depretion was that many americans had been living on credit which means that they had made an arangement with a store/s and would "get it now and pay later" the problem with this was that americans often bought too much or were unable to pay off the interest rates.

3. According to your reading, what are the major causes of the Great Depression?
I believe that the Great Depretion was caused by several aspects of american life during the twenties. It was kind of like a snow ball effect once it got started it got bigger and bigger very fast. First it was the deline in many major industries (some of which were caused by a housing start shortage) and by the misforchune of the agricultural industy and then by consumers who over spent and realized it too late.

4. What was Hoover’s philosophy of government?
He believed that periods of economic success were often followed by periods of depresion. First HOover reasured americans that america was doing fine and told them to go about their lives normaly. He believed that the government should play a limitted role in helping to solve the economic crisis. He called for meatings with bussiness leaders and asked them not to lower wages or lay off people then he ask labourers not to demand higher wages and not to go on strike.

5. What was Hoover’s initial reaction to the stock market crash of 1929?
He wanted every one to be optomistic.
6. What was the nation’s economic situation in 1930?
The econemy was in a terible state and unemployment was on the rise.
7. How did voters in 1930 respond to this situation?
When the economy storted gettting really bad people started to dislike Hoover and the republicans and in the 1930 election Franklin Delenor Roosevelt, a democrat was elected president.
8. What did Hoover do about the economic situation?
He built the Boulder Dam (now known as the Hoover Dam) on the Colorado.
9. How did the economy respond to his efforts?
The government loaned out money to big bussinesses but it was to late and it did little to help the economy. It was too little too late.