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What was the underlying cause of the great depression

29/04/2021 Client: muhammad11 Deadline: 2 Day

A: There were many causes that led to the Great Depression. Most people think that the stock market crash of 1929 caused the Great Depression. But it was only one of the causes. Bank failures also led to the Great Depression. When banks failed, many had uninsured their funds, so they simply just lost their money. The banks that had survived became more stingy on how many loans the would give out, to protect their interests. After the stock market crashed, many feared that there would be more economic hits. This led to a decrease in spending across the board. People from all different classes stoped purchasing items, leading to less products needing to be made. Many people lost their jobs during this time because of it. The Smoot-Hawley tariff was a foreign cause of the depression. The tariff charged a high tax for imports from foreign countries. Ultimately, the United States lost a lot of business from foreign businesses.

How did President Hoover respond to the economic emergency?

President Hoover basically just put the power back into the peoples hands. He encouraged them to "tighten their belts and work hard"(Henretta. 2016) to help boost the economy. He also expressed that the business community could turn their situation around by themselves, without assistance from the government.
This is what they called the gold standard. It was this mindset that made the Depression get to the depth that it did, and why it lasted so long.

Henretta, James A. America: A Concise History, Volume 2, 6th Edition. Bedford/St. Martin's, 9/2016. VitalBook file.

STUDENT 2:

Q: What were the main programs of the New Deal’s “Hundred Days”? What were their goals? Evaluate the success of the various programs.

A: The great depression started in October 1929. The roaring twenties had come to an end. From 1929 to 1939 the United States suffered the worst economic downturn in the history of the industrialized world. At the great depressions, lowest point nearly 15 million people were unemployed, half of the countries banks had failed, some 1.2 million people were homeless, industrial production fell to roughly half of what it was and on average 20,000 farms were foreclosed on monthly.

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