Causes & Early Effects of the Great Depression

Read Chapter 22-1 and answer the first 3 questions. Then Read Chapter 22-3 (yes, skipping 22-2) and answer the remaining questions. Post the questions and answers to your blog before class on Tuesday, Jan. 26. Title: Causes & Early Effects of the Great Depression Labels: Great_Depression, Hoover

1. What happened on "Black Tuesday"?
The bottom fell out of the market and 16.4 shares were lost.
The rate of production and sales in the economy had dropped very

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 rate of production and sales in the economy had dropped very low. At the same time the rate of laborers within the economy had increased therefore creating instability. This instability was a deffinate cause of the great depression.

3. According to your reading, what are the major causes of the Great Depression?
The major causes of the great depression was the large amounts of money that people and banks invested into the stock market. Also many countries overseas needed to recover from world war 1 and the major debts that had come from it.


4. What was Hoover’s philosophy of government?
one of governments main functions was to help cooperations between competing groups and the interest of society.


5. What was Hoover’s initial reaction to the stock market crash of 1929?
He wanted business leaders, banks, and laborers towork together to find solutions to the stockmarket crash.


6. What was the nation’s economic situation in 1930?
Boulder Dam


7. How did voters in 1930 respond to this situation?
The democratic party used the anti-hoover sentiments that voters expressed in order to win over the people. Because of this the democrats were able to win the election and have more people in congress.


8. What did Hoover do about the economic situation?
He supported the Federal Farm bord which would raise the prices of crops and allow its memebers to buy them. He also created the national credit corporation which loanded money to small banks so that they can battle bankruptsy.

9. How did the economy respond to his efforts?
The economy was unaffected and his efforts failed.