Causes of the Great Depression
The Great Depression was caused by the following: 1) the crashing of the stock market; 2) hoarding of money by the people; 3) promising of the government to its people that an one ounce of gold was exchangeable for twenty dollars; and 4) implementing of the Smoot Hawley Tariff Act which augmented tariffs to a tax of fifty percent on goods that were imported (Wikipedia n.p.).
Reason/s Why the World Watched So Closely
The world watched so closely because of the Great Depression’s effect/s. I strongly believe that if there is to be labeled “the greatest single effect of the Depression in the United States” then that would be poverty (The.. n.p.). Naturally, the following came along as a consequence of poverty as well: First, families were destroyed – as proven by 1932 headlines that more than a hundred children dies of malnutrition in New York City (The.. n.p.). Second, farms were lost (The.. n.p.). Third, homes were lost (The.. n.p.). Last but not least, unemployment occurred – as evidenced by news reports in 1932 that laying off is occurring (The.. n.p.). Not only that poverty was extremely felt, back then it was also concretely noted down (The.. n.p.). Explaining further, the U.S. National income in 1932 was recorded at only $41billion, $40billion lesser three years before that (The.. n.p.). Moreover, for three years beginning in 1929 there were nine million bank accounts wiped out (The.. n.p.). Also, there were eighty five thousand businesses that failed in just three years or from 1929 – 1932 (The.. n.p.).
Hoover’s Contribution to the Great Depression
The great depression worsened because of Hoover. First of all, he was the one who signed the Smoot Hawley Tariff Act which augmented tariffs to a tax of fifty percent on goods that were imported (Wikipedia n.p.). Second, he advocated a laissez-faire government wherein the government did not have the power to intervene, thus allowing free trade and market competition (Wikipedia n.p.). He also allowed overproduction of goods instead of just producing according to consumer’s demands (Wikipedia n.p.). He also permitted poor taxation practices (Wikipedia n.p.). All the aforementioned contributed to the Great Depression (Wikipedia n.p.).
The Social Studies Help Center. How Did the Great Depression Affect the Lives and
Dreams of those that Lived Through It? 2006. n.a. 25 July 2007
The Social Studies Help Center. The Great Depression .2006. n.a. 25 July 2007
Wikipedia. Causes of the Great Depression. 23 July 2007. Wikimedia Foundation, Inc.
25 July 2007 http://en.wikipedia.org/wiki/Causes_of_the_Great_Depression