Two factors that were responsible for the great depression in america during 1929

The Depression caused major political changes in America. Three years into the depression, President There were mass migrations of people from badly hit areas in the The memory of the Depression also shaped modern theories of government and economics and resulted in many changes in how the government dealt with economic downturns, such as the use of Causes [ ] Monetary interpretations [ ] Examining the Many rural banks began to fail in October 1930 when farmers defaulted on loans. There was no The [ clarification needed] High [ citation needed] The U.S. interest rates were also affected by [ citation needed] In the late 20th century, Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. — Ben S. Bernanke Stock market crash [ ] The Since many banks had also invested their clients' savings in the stock market, these banks were forced to close when the stock market crashed. After the stock market crash and the bank closures, people were afraid of losing more money. Because of their fears of further economic challenge, individuals from all classes stopped purchasing and consuming. Thousands of individual investors who believed they could get rich by investing on margin lost everything they had. The stock market crash severely impacted the American economy. Banking failures [ ...

Herbert Clark Hoover was born in 1874 in Iowa, and was the first US president to have been born west of the Mississippi River. He worked as a mining engineer and an independent mining consultant, traveling the world and building a sizable personal fortune. 1 ^1 1 start superscript, 1, end superscript When 2 ^2 2 squared He also served as the director of the American Relief Administration, which was formed in 1919 and supplied relief to war-torn Europe and Russia. 3 ^3 3 cubed Once in office, Hoover sought to reform the nation’s regulatory system. He was not an advocate of a laissez-faire economy, but instead encouraged the voluntary cooperation of the federal government and big business. At Hoover’s direction, the Internal Revenue Service and the Justice Department prosecuted gangsters, including Al Capone, for tax evasion. Hoover considered himself a progressive, and this was reflected in some of his administration’s policies, including the reorganization of the Bureau of Indian Affairs, the organization of the Federal Bureau of Prisons, the closing of tax loopholes for the wealthiest Americans, the expansion of national park lands, and the strengthening of protections for labor. In 1929, the stock market crash catalyzed the onset of the 5 ^5 5 start superscript, 5, end superscript Though Hoover has gained a reputation for dithering in the face of economic peril, his administration actually pursued measures that helped lay the basis for Roosevelt’s Hoover Dam on the Color...

By then, production had already declined and unemployment had risen, leaving stock prices much higher than their actual value. Additionally, wages at that time were low, consumer debt was proliferating, the agricultural sector of the economy was struggling due to drought and falling food prices and banks had an excess of large loans that could not be liquidated. The American economy entered a mild recession during the summer of 1929, as consumer spending slowed and unsold goods began to pile up, which in turn slowed factory production. Nonetheless, stock prices continued to rise, and by the fall of that year had reached stratospheric levels that could not be justified by expected future earnings. Stock Market Crash of 1929 On October 24, 1929, as nervous investors began selling overpriced shares en masse, the stock market crash that some had feared happened at last. A record 12.9 million shares were traded that day, known as “Black Thursday.” Five days later, on As consumer confidence vanished in the wake of the stock market crash, the downturn in spending and investment led factories and other businesses to slow down production and begin firing their workers. For those who were lucky enough to remain employed, wages fell and buying power decreased. Many Americans forced to buy on credit fell into debt, and the number of foreclosures and repossessions climbed steadily. The global adherence to the Bank Runs and the Hoover Administration Despite assurances from President Her...

The worldwide economic downturn known as the Great Depression began in 1929 and lasted until about 1939. It caused steep declines in output, severe unemployment, and acute deflation and led to extreme human suffering and profound changes in economic policy. The Depression touched nearly every country of the world after first arising in the United States, where its social and cultural effects were especially profound. Facts Also Known As Depression of 1929 • Slump of 1929 Date 1929 - c. 1939 Location Context Background Top Questions The Great Depression, which began in the United States in 1929 and spread worldwide, was the longest and most severe economic downturn in modern history. It was marked by steep declines in industrial production and in prices (deflation), mass unemployment, banking panics, and sharp increases in rates of poverty and homelessness. Four factors played roles of varying importance. (1) The stock market crash of 1929 shattered confidence in the American economy, resulting in sharp reductions in spending and investment. (2) Banking panics in the early 1930s caused many banks to fail, decreasing the pool of money available for loans. (3) The gold standard required foreign central banks to raise interest rates to counteract trade imbalances with the United States, depressing spending and investment in those countries. (4) The Smoot-Hawley Tariff Act (1930) imposed steep tariffs on many industrial and agricultural goods, inviting retaliatory measures that...