Ch.24

What caused the Great Depression, how did President Hoover respond?

In 1929 the Wall Street crashed and launched a depression that hit every household. The market was stable and there was hug money on it until October 24, 1929 which called “Black Thursday” when the collapse came on.  As result of this collapse, it caused the depression on Americans at that time especially to stockholders. They felt that American economy is unstable after all these of successful achievements in industrial market starting with appliances until building cars. Moreover, they claim that agriculture has been forgotten since demand increased on industrial market. We notice that when all farmers tend to work in factories in order to survive even they got less wage.  However, automobile and textile were overextended but unfortunately couldn't help to recovery to what happened. US depression influenced global economic as well such as Europe. This crisis impacted on US in bad way which many back is closed and unemployment rate increased. Many Americans were struggle to find a job which let many of them to leave to other cities.  

President Hoover suggested that city and state to find a way to solve this problem by creating public works projects. Also, “he set up and Emergency Committee for Employment to coordinate voluntary relief efforts”. ” Boyer, 581". Also, he asked nation’s largest bank to create private lending agency to help some bank to recovery. Moreover, he asked to increase tax which was hard pressed Americans since they were suffering from this crisis. Finally, he set up what called “Reconstruction Finance Corporations” which its main aim to provide funds to banks and insurance companies. Many of Americans were not agree with Hoover strategies of solving or dealing with crisis.