Premium Essay

Why Did President Hoover Respond To The Great Depression

Submitted By
Words 488
Pages 2
What were the domestic and foreign causes of the Great Depression? How did President Hoover respond to the economic emergency?

The Great Depression was caused by multiple things. The aftermath of WWI

destabilized the international system of trade and finance and also disrupted the

international gold standard. When the economies would begin to go down, investors

would pull their investments and demand payments be made in gold (A., 2012, p. 686).

The cause of the great depression was due to multiple things, it was a domino effect.

Below are the following causes that I was able to find:

1.The Stock Market crash of 1929- After WWI, consumer lending became the tenth

largest business in the country, topping $7 billion a year. Many Americans also

bought into the …show more content…
686). As long as the economy

was still growing and people had jobs the stock market would continue to climb.

Instead of the stock share price being valued and driven by economic

fundamentals, they were valued based on the optimism of investors. The problem

occurred with over 16 million shares were traded in a single day. Billions were

lost and it wiped out thousands of investors (History.com Staff, 2010).

2.Consumer spending- Once the stock market crashed, consumers stopped

purchasing items in order to make up for what was lost. “Having bought on credit,

and now facing hard times, consumers cut back dramatically, creating a vicious

cycle of falling demand and forfeited loans” (A., 2012, p. 686). The inability to pay

back the loans caused banks to close. Also, since people stopped spending

money, industrial America was suffering. Companies had to cut back which cause

unemployment to rise. In all, production fell by 37%, construction fell by 78%, and

unemployment reached 24%. Last, farmers had to lower prices to feed the

country and they were barely making enough to keep going. This is what I call

the “trickle-down

Similar Documents

Premium Essay

Republicans Don't Have a Clue

...three stock market crashes, President Herbert Hoover in 1929, who had easily won the republican nomination in 1928 (The White House), Ronald Regan during the crash of 1987 where the market lost twenty-two percent and costing investors five hundred billion dollars (Unknown), and George W. Bush in the week long crash in October, 2008 from where we are still trying to dig ourselves out. Deregulation is a policy of the Republican Party. Herbert Hoover, in his final 1932 campaign speech stated; “We are part of a world, the disturbance of whose remotest population affects our own financial system, our markets, our employment, and the prices of our farm products. And we have many problems of our own growing out of the Great War--the inflation of values during the war and the stupendous increase of our debt, the failure of foreign countries to respond to their debt obligations to us. Finally, with the desperate crisis abroad, the whole world scrambled to convert their property into gold and thus withdrew from us suddenly over $2,400 million of exchange and gold. These fears spreading to our own citizens caused them to withdraw $1,600 million in currency from circulation. The effect of this was to withdraw vast sums of gold from our own use, as we must protect the gold convertibility of our currency, with further repercussions of credit stringency, unemployment, and dropping prices.” (Woolley). A few days after the Supreme Court made George W. Bush president in 2000, Texas senator Phil...

Words: 1005 - Pages: 5

Premium Essay

Creative Writing: Hooverville

...short, scrawny Billy struggles to keep up, tripping over the mess created from the residents’ poorly built homes. It is 1933 Oklahoma and people only care about themselves, but not Jimmy and Billy, the 10 year olds watch out for each other no matter what comes their way. The smell of rust and dirt fills their noses, while no green can be seen anywhere. The community is filled with people, who are covered in brown and sadness. “Jimmy, they are calling this the Great Depression, why?” Jimmy replies, “I reckon it’s because of the dust storms and everyone’s attitude.” Billy asks, “Why do we live in this mess?” Jimmy stops their march and replies angrily, “Look out yonder, do you see another place to live?” The poor boy shamefully says “No”. “Then let’s head back to the house, the old man is waiting for us.” The two boys walk into their makeshift house, Billy nervously exclaims, “We’re home Ol’ Greg!” The elderly man responds, “Get in here! You kids need to be workin! Ain’t no army here, ever since the Hoover guy came in with rugged...

Words: 1352 - Pages: 6

Free Essay

Hist 110

...History 110 / Midterm Study Guide During this part of the course we address several different themes that shaped modern America. The first is the importance of the Civil War and Reconstruction in setting the stage for the great industrial growth and development in the late 19th century. The second theme is the impact of industrialization in late 19th century America--economically, politically, socially, and culturally. A third theme centered on the emergence of an aggressive America foreign policy that in general sought to export American values and ideas so as to bring order to the international scene. The fourth major theme is the rise of progressivism in the first two decades of this century. Like the unions and Populists before them, the Progressives responded to the tremendous impact of industrialization and corporate capitalism on American society, however with much more success. A fifth theme centers on the American entrance into World War I and the war's impact on American society and politics. A sixth theme is the conflict over values and power in American society. Different groups (African-Americans, KKK, nativist/anti-immigrant, socialists, women, etc) with their own unique visions of what American society should be came into conflict over whose vision should predominate. A final theme is emergence of a powerful, welfare state in the form of the New Deal which finally addressed in a large-scale and systematic effort the negative consequences inherent in capitalism...

Words: 1041 - Pages: 5

Free Essay

Alcatraz

...Alcatraz Island has quite a distinct history. Many people know that Alcatraz served as a federal prison, but most are reluctant to know that this island served as fort. Built before the Civil War, it served two main purposes. First, that it was to guard the San Francisco bay area from enemy ships against a foreign invasion, and second, to hold hostage prisoners of war or POW's as they were called. In this report, I'll show you how this fortress came to be a federal prison, why it is no longer in operation today, and most importantly, to show why it was built in the first place. When the great Gold Rush of 1849 first started, California grew from what would be considered a small, unpopulated state, into what it is now. California is now one of the most populated states and it was mostly the gold rush that brought attention to California. As the government saw all of this happening, they realized that California was much more important than they ever realized. In their realization, they decided that California must be protected. San Francisco has one of the largest bays in all of California, and so this was where enemy countries would most likely to try to invade the country. So this is where Alcatraz was to lie, to serve as a military fort. It was supposed to serve as a secondary base in companionship to another base located on the other side of Golden Gate Bridge. But with severe problems trying to build this other base, Alcatraz was to remain alone. Out in the middle of the San...

Words: 4140 - Pages: 17

Free Essay

The American Occupation of Haiti: Identifying Coin Objective to Protect American Interests from 1915 to 1934

...focus on the objectives of the American involvement in the occupation of the Caribbean nation of Haiti. Highlighted are the pretenses under which America began their involvement and the subsequent results of the invasion. The economic, political and social effects that the US had on the Haitian community had it’s successes in areas such as the rebuilind of the infrastructure, but were significantly countered with blatant violations in human rights laws and corruption within the government. These areas of failure reject the fundamental basis of what a successful counterinsurgency entails. Although there is much evidence of successes and failures in Haiti, to conclude, a realist argument will be presented in order to provide some answers as to why decisions were made to occupy Haiti under a COIN objective, but withdraw without meeting those objectives. Keywords: cacos, violence, attitudes, counterinsurgency “For our forebears, for our country, Oh God of the valiant! Take our rights and our life under your infinite protection, Oh God of the valiant! For our forebears, for our country.” –Haitian National Anthem Haiti, which is officially the Republic of Haiti, is a Caribbean country. It occupies the western, smaller portion of the island of Hispaniola, in the Greater Antillean archipelago, which it shares with the Dominican Republic. The country's capital is Port-au-Prince. Haitian Creole and French are the official languages. Haiti's regional, historical...

Words: 3984 - Pages: 16

Premium Essay

Scanning Applications

...U.S. Department of Justice Federal Bureau of Investigation 2012 The Strategic Information and Operations Center at FBI Headquarters is the 24/7 command post that monitors FBI operations and law enforcement activities around the globe. An FBI agent examines a potentially contaminated letter during a white powder training exercise. 2012 The FBI Story I A Message from FBI Director Robert S. Mueller, III For the FBI and its partners, 2012 was a year that reminded us once again of the seriousness of the security threats facing our nation. During the year, extremists plotted to attack—unsuccessfully, thanks to the work of our Joint Terrorism Task Forces—the U.S. Capitol, the New York Federal Reserve Bank, and other landmarks on U.S. soil. Tragically, on the 11th anniversary of 9/11, a hateful attack in Benghazi took the lives of the U.S. Ambassador to Libya and three other Americans. In the cyber realm, a rising tide of hackers took electronic aim at global cyber infrastructure, causing untold damages. High-dollar white-collar crimes of all kinds also continued to siphon significant sums from the pocketbooks of consumers. And in Newtown, Connecticut, 20 young children and six adults lost their lives in one of the worst mass shootings in American history, ending a year of violence that saw similar tragedies around the country. Working with its colleagues around the globe, the FBI is committed to taking a leadership role in protecting the nation. As you can see from...

Words: 67387 - Pages: 270

Premium Essay

Wwii

...that policy changed as the war progressed. LO 3 Describe the events of World War II, both in Europe and in the Pacific, and explain why the United States acted as it did throughout the conflict. LO 4 Describe and discuss the American home front during World War II, paying special attention to long-term societal changes. LO 5 Explain how World War II was brought to an end, both in Europe and in the Pacific, and discuss the immediate aftermath of the war both in America and around the world. 9781133438212, HIST2, Volume 2, Kevin M. Schultz - © Cengage Learning. All rights reserved. No distribution allowed without express authorization Just as World War II transformed the world, it also transformed the United States’s role in world affairs. “ ” If the New Deal could not end the Great Depression, a world war would. Beginning in the late 1930s, talk of war became more insistent and The Second World War can be seen as an energizing urgent in Europe. The finanevent in American history rather than a destructive one. cial uncertainty of the worldStrongly Disagree Strongly Agree wide depression had created 1 2 3 4 5 6 7 political vulnerabilities that assisted the rise of militant, expansion-minded dictators in Italy and Germany. Americans watched the continent nervously, uncertain how European affairs might affect them. Little did they know that, in the end, the Second World War would transform America even more than the New Deal. The war prompted a tremendous mobilization...

Words: 11653 - Pages: 47

Premium Essay

Media and Medicine Notes

...course encompasses? Bert Hanson – medical breakthrough = social phenomenon * How has promise of medical breakthroughs influenced: media culture and patients expectations relationship between medicine and media place of medicine in American political culture How and why does the medical community use media to communicate with public? Increasingly interdependent spheres w/ differing perspectives on vision of media’s role is in “media-ted” world What makes health “news”? Producing Medical Heroes How and why has American society selected its medical heroes? How has this changed over time? What functions do depictions of heroic doctors (Walter Reed, and House, M.D.) and patients serve? How have fictional medical characters – in novels, Hollywood films, on TV – shaped expectations of medical culture? VD, HIV, and the Media How did the media contribute to the publics perception of venereal diseases and HIV? What images (both visual, and stories told to make a point) came most powerfully to cultural prominence? What were the aims of medical and public health authorities, the state, and media professionals in working to make those images publically visible? What role did the media play in changing public’s image of HIV? Stigmatization, Destigmatization, and Medical Illnesses Ways portrayal of medical condition in media contributes to a stereotype in society? How does representation influence publics perception of a particular medical condition...

Words: 4711 - Pages: 19

Free Essay

Drug Addiction

...CHAPTER 2. A HISTORY OF DRUG AND ALCOHOL ABUSE IN AMERICA Written by: Tammy L. Anderson To appear in: Harrison, L., Anderson, T., Martin, S., and Robbins, C. Drug and Alcohol Use in Social Context. Belmont, CA: Wadsworth Publishing -1- A HISTORY OF DRUGS AND ALCOHOL IN THE UNITED STATES Introduction The purpose of this chapter is to review the history of drug use and its social control in the United States so that students can gain an improved and thorough understanding of today’s problems and policies. Our approach to this matter is sociological, i.e., exploring how the interconnection between culture, social institutions, groups, and individuals function to create drug-related phenomena. A sociological approach integrates many kinds of social, cultural, political, and economic factors that manifest themselves in everyday life. While pharmacology helps us comprehend how specific drugs impact brain activity, sociology can inform us about the social roots of drugrelated behaviors which ultimately shape beliefs and behavior and motivate social policy. Therefore, a review of drug use in the U.S. and the social response to it must consider many diverse phenomena. This broader framework will move us beyond domestic borders and into the international community, for the history of drug abuse is an international, socio-political marvel. Another idea warrants mentioning before we begin our history lesson. It centers on the idea that drug use and abuse are socially...

Words: 16400 - Pages: 66

Free Essay

Economics

...PAUL KRUGMAN WINNER OF THE NOBEL PRIZE IN ECONOMICS THE RETURN OF DEPRESSION E C O N O M CS AND T H E C R I S I S OF I 2 0 0 8 ISBN 9 7 8 - 0 - 3 9 3 - 0 7 1 0 1 - 6 W USA $24.95 CAN. $27.50 hat better guide could we have to the 2008 financial crisis and its resolution than our newest Nobel Laureate in Economics, the prolific columnist and author Paul Krugman? In his prescient 1999 classic, The Return of Depression Economics, Krugman surveyed the economic crises that had swept across Asia and Latin America and pointed out that they were a warning for all of us: like diseases that have become resistant to antibiotics, the economic maladies that caused the Great Depression were making a comeback. In the years that followed, as Wall Street boomed and financial wheeler-dealers made vast profits, the international crises of the 1990s faded from memory. But now depression economics has come to America. When the great housing bubble of the mid-2000s burst, the U.S. financial system proved as vulnerable as those of developing countries caught up in earlier crises—and a replay of the 1930s seems all too possible. In this new, greatly updated edition of The Return of Depression Economics, Krugman shows how the failure of regulation to keep pace with an increasingly out-of-control financial system set the United States and the world up for the greatest financial crisis since the 1930s. He also lays out the steps that must be taken...

Words: 59318 - Pages: 238

Premium Essay

Understanding the Role of Perceptions, Personality and Emotions in the Workplace

...Understanding the role of perceptions, personality and emotions in the workplace Perceptions, personality and emotions cannot be ignored when discussing the workplace because quite simply, the workplace is made up of people who come with different personalities, subject to different emotions and ways of looking at things. A successful company will understand this and its managers will work to create a positive atmosphere. Emotions, personalities and perceptions all have an effect on how employees interact with one another, how decisions are made, how managers are able to motivate their employees to increase productivity, and how conflicts and negotiations are handled. It stands to reason that if employees are happy and enjoy coming to work then they will be more productive. According to Barsade and Gibson, “…the evidence is overwhelming that experiencing and expressing positive emotions and moods tends to enhance performance at individual, group, and organizational levels” (Barsade & Gibson, 2007). Frost describes a mechanism of “emotional contagion” where when the leaders express positive emotions, the staff will be influenced by this and the outcomes tend to be positive (Frost, 2004). It would stand to reason then, that in a company with displays of negative emotions, the opposite would result. Affect is an umbrella term used by Barsade and Gibson as a range of discrete emotions (fear, anger, joy), moods (cheerful, sad), dispositional traits (negative, upbeat)...

Words: 5752 - Pages: 24

Free Essay

Alibaba

...1/15/2015 The Great American Bubble Machine | Rolling Stone ǺŘČĦİVĚȘ MŲȘİČ PǾĿİȚİČȘ ȚV MǾVİĚȘ ČŲĿȚŲŘĚ ŘĚVİĚẄȘ ĿİȘȚȘ ŘȘ ČǾŲŇȚŘỲ ȘŲBȘČŘİBĚ Nutribullet  … Ninja Mega  … Nutri Ninja BL450 £119.99 £169.99 £80.90 (plus delivery) (plus delivery) (plus delivery) The Great American Bubble Machine Fřǿm țěčħ șțǿčķș țǿ ħįģħ ģǻș přįčěș, Ģǿŀđmǻň Șǻčħș ħǻș ěňģįňěěřěđ ěvěřỳ mǻjǿř mǻřķěț mǻňįpųŀǻțįǿň șįňčě țħě Ģřěǻț Đěpřěșșįǿň -- ǻňđ țħěỳ'řě ǻbǿųț țǿ đǿ įț ǻģǻįň BỲ MǺȚȚ ȚǺİBBİ | Ǻpřįŀ 5, 2010  Șħǻřě  Țẅěěț  Șħǻřě  Čǿmměňț  Ěmǻįŀ ADVERTISEMENT Victor Juhasz    The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great http://www.rollingstone.com/politics/news/the­great­american­bubble­machine­20100405 AROUND THE WEB 1/61 1/15/2015   The Great American Bubble Machine | Rolling Stone vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who's Who of Goldman Sachs graduates. '80ș Șțǻřș Ỳǿų Ẅǿň'ț Řěčǿģňįżě Țǿđǻỳ 5 Mįňǿř 'Șțǻř Ẅǻřș' Ǻčțǿřș Ỳǿų Đįđň'ț Řěǻŀįżě Ẅěřě İň Ěvěřỳțħįňģ Mųșįčįǻňș Ẅħǿ Ǻřěň’ț Ẅħǿ Ỳǿų Țħįňķ Țħěỳ Ǻřě Fǻmǿųș Șǿňģș Țħǻț ...

Words: 13104 - Pages: 53

Premium Essay

Policy Failure

...THE GREAT RECESSION Since publication of Robert L. Hetzel’s he Monetary Policy of the Federal Reserve (Cambridge University Press, 2008), the intellectual consensus that had characterized macroeconomics has disappeared. hat consensus emphasized eicient markets, rational expectations, and the eicacy of the price system in assuring macroeconomic stability. he 2008–2009 recession not only destroyed the professional consensus about the kinds of models required to understand cyclical luctuations but also revived the credit-cycle or asset-bubble explanations of recession that dominated thinking in the nineteenth century and irst half of the twentieth century. hese “market-disorder” views emphasize excessive risk taking in inancial markets and the need for government regulation. he present book argues for the alternative “monetary-disorder” view of recessions. A review of cyclical instability over the last two centuries places the 2008–2009 recession in the monetary-disorder tradition, which focuses on the monetary instability created by central banks rather than on a boom-bust cycle in inancial markets. Robert L. Hetzel is Senior Economist and Research Advisor in the Research Department of the Federal Reserve Bank of Richmond, where he participates in debates over monetary policy and prepares the bank’s president for meetings of the Federal Open Market Committee. Dr. Hetzel’s research on monetary policy and the history of central banking has appeared in publications...

Words: 177093 - Pages: 709

Premium Essay

Josh

...Español | Français | Русский | USINFO > Publications An Outline of the U.S. Economy Related Item USA Economy in Brief CONTENTS Continuity and Change This volume was prepared for the U.S. Department of State by Christopher Conte, a former editor and reporter for the Wall Street Journal, with Albert R. Karr, a former Wall Street Journal reporter. It updates several previous editions that had been issued by the U.S. Information Agency beginning in 1981. How the U.S. Economy Works The U.S. Economy: A Brief History Small Business and the Corporation Stocks, Commodities, and Markets The Role of the Government in the Economy Monetary and Fiscal Policy American Agriculture: Its Changing Significance (Posted February 2001) Labor in America: The Worker's Role Other Language Versions: Foreign Trade and Global Economic Policies Afterword: Beyond Economics Glossary Executive Editor: George Clack | Editor: Kathleen E. Hug | Art Director: Barbara Long Illustrations: Lisa Manning | Internet Editor: Barbara Long This site is produced and maintained by the U.S. Department of State's Bureau of International Information Programs. Links to other internet sites should not be construed as an endorsement of the views contained therein. Home | About USINFO | Site Index | Webmaster | Privacy Topics | Regions | Resource Tools | Products | | Continuity and Change How the U.S. Economy Works The U.S. Economy: A Brief History Small...

Words: 49743 - Pages: 199

Free Essay

Research Paper

...[pic] ConocoPhillips – Final Report MBA 808 – Moscow May 1, 2008 Scott Legler Erin Osborn Greg Whitehorn Introduction The ConocoPhillips and LUKOIL joint venture provides great insight into doing business in Russia. The Russian economy continues to grow as companies domestically and internationally find success in an emerging market once filled with corruption and instability. Through an analysis of the ConocoPhillips and LUKOIL joint venture one can see the opportunities available for those companies who are able to enter this market. ConocoPhillips provides lessons learned and a six-step approach for a successful joint venture business in Russia. ConocoPhillips also provides insight into many of the challenges still facing those who desire to do business in Russia. They prove that with a will to confront and determination to overcome these challenges, business in Russia can prove to be quite profitable. Background ConocoPhillips ConocoPhillips is the third largest energy company in the U.S. Based on market capitalization; it is surpassed in size only by U.S. oil giants Exxon Mobile and Chevron. ConocoPhillips is headquartered in Houston, TX and employees over 32,000 people worldwide in forty countries. According to its website “ConocoPhillips is known worldwide for its technological expertise in reservoir management and exploration...

Words: 7377 - Pages: 30