1Q) which were the main causes of great depression? From the book of history economy I have learnt about the economic situations in America and among them the most devastating was Great Depression. In the year March 1930 when Herbert Hoover was president when the Great Depression started. The main problem was to the farmers who suffered the heavy prices and indebtedness. There was a decline in the economic activity. There was also the crash in stock market, banking crisis also existed and also smooth Hawley tariff came into existence. He proclaimed in that the U.S. Had "passed the most noticeably awful" and contended that the economy would get itself straightened out. The most noticeably bad had started and it endured till the flare-up of World War II in 1939.There are a few reasons for the Great Depression which are generally bantered about. There was no single reason, however a few things conflicted with to get it going. Few noteworthy reasons were a feeble saving money framework because of Federal Reserve Monetary Policy, over creation of merchandise in industry and agribusiness, over spending and blasting credit gurgled, unequal circulation of riches, high duties and war obligations. Political changes 1928 Presidential decisions, Stock Market accident and money related frenzy. It was noted that The Wall Street Crashed in 1929 was the most devastating crash in the history of the United States. On October 1929 is called “Black Tuesday.” the stock market lost $14 billion, making the loss for that week an astounding $30 billion. It took 23 years for the stock market to hit the high it was at before the crash. It was also published in New York times about the new of stock market crashing.The news of stock market crash spread like a wild fire cause panic, customers rushed to banks for withdrawing money causing disastrous “bank runs”. Many wealth people lost their total wealth and committed suicide. Many companies were shut down and lot of people lost their jobs. It was noted at the peak of depression 1 out of every 4 people were jobless. Between 1930 and 1935 nearly 750,000 farms were lost through bankruptcy or sheriff sales. People who lost their homes often lived in what were called “Hoovervilles” or shanty towns that were named after President Herbert Hoover. There was also “Hoover Stew” which was the name for food handed out to the poor at soup kitchens. “Hoover Blankets” were the newspapers that were being used to cover people like a blanket. “Hoover Hogs” were jack rabbits that were used for food, and “Hoover Wagons” were broken down cars that were pulled by mules. People who became homeless would ride on railroad cars, because they didn’t had money to travel. It is believed that more than 50,000 people were injured or killed while jumping trains. They traveled together and were called “Hobos”. The living conditions at that time in United States of America were miserable there was not enough food, shelter or medical care. Many suffe ...

1. 1Q) which were the main causes of great depression?
From the book of history economy I have learnt about the
economic situations in America and among them the most
devastating was Great Depression. In the year March 1930 when
Herbert Hoover was president when the Great Depression
started. The main problem was to the farmers who suffered the
heavy prices and indebtedness. There was a decline in the
economic activity. There was also the crash in stock market,
banking crisis also existed and also smooth Hawley tariff came
into existence. He proclaimed in that the U.S. Had "passed the
most noticeably awful" and contended that the economy would
get itself straightened out. The most noticeably bad had started
and it endured till the flare-up of World War II in 1939.There
are a few reasons for the Great Depression which are generally
bantered about. There was no single reason, however a few
things conflicted with to get it going. Few noteworthy reasons
were a feeble saving money framework because of Federal
Reserve Monetary Policy, over creation of merchandise in
industry and agribusiness, over spending and blasting credit
gurgled, unequal circulation of riches, high duties and war
obligations. Political changes 1928 Presidential decisions, Stock
Market accident and money related frenzy.
It was noted that The Wall Street Crashed in 1929 was the most
devastating crash in the history of the United States. On
October 1929 is called “Black Tuesday.” the stock market lost
$14 billion, making the loss for that week an astounding $30
billion. It took 23 years for the stock market to hit the high it
was at before the crash. It was also published in New York
times about the new of stock market crashing.The news of stock
market crash spread like a wild fire cause panic, customers
rushed to banks for withdrawing money causing disastrous
“bank runs”. Many wealth people lost their total wealth and
committed suicide. Many companies were shut down and lot of

2. people lost their jobs. It was noted at the peak of depression 1
out of every 4 people were jobless. Between 1930 and 1935
nearly 750,000 farms were lost through bankruptcy or sheriff
sales.
People who lost their homes often lived in what were called
“Hoovervilles” or shanty towns that were named after President
Herbert Hoover. There was also “Hoover Stew” which was the
name for food handed out to the poor at soup kitchens. “Hoover
Blankets” were the newspapers that were being used to cover
people like a blanket. “Hoover Hogs” were jack rabbits that
were used for food, and “Hoover Wagons” were broken down
cars that were pulled by mules. People who became homeless
would ride on railroad cars, because they didn’t had money to
travel. It is believed that more than 50,000 people were injured
or killed while jumping trains. They traveled together and were
called “Hobos”.
The living conditions at that time in United States of America
were miserable there was not enough food, shelter or medical
care. Many suffered from diseases. In 1930’s thousands of
schools were operating on reduced hours or were closed down
entirely. Nearly 3 million children left schools, and at least
200,000 took to riding the rails either with their parents or as
orphans.
Discrimination hit was hardest hit on Native Americans, African
Americans, Mexican Americans and women were bitterly
victims during the Great Depression. They were looked as
groups that could take jobs from the white men. Many couples
delayed getting married, and divorce rates and birth rates
dropped. People abandoned their families. In 1940 pool revealed
that 1.5 million married women were abandoned by their
husbands.
Nature played its role in making things worst severe drought

3. and dust storms made the Great Depression even worse, because
it dried out farmlands and forced families to leave their farms.
On May 9, 1934, a dust storm carried about 350 million tons of
dirt 2,000 miles eastward and dumped four million tons of
prairie dirt in Chicago. Tens of thousands of animals and people
were killed in the drought and dust.
The board game Monopoly which first became available in
1935, became popular as people taught it was the easy way to
make money. The “Three Little Pigs” was the symbol of the
Great Depression with the wolf representing and the three little
pigs representing average citizens who eventually succeeded by
working together. Democrat Franklin Delano Roosevelt (1882-
1945) became president in March 1933, he promised a “New
Deal for the American people”.
Industry Monetary Policy Stock Market crash and financial
panic historians disagree as to the cause of Great Depression.
Most scholars would include “Unequal distribution of wealth
over production high tariffs and war debts causes of the Great
Depression Agriculture”.
2Q) why did the great depression last so long?
In 1920’s was known as a prosperous time, but not for
everyone, installment buying, using credit and paying back in
small amounts was introduced which allowed people to buy
cars, radios, houses and other products on the 1920’s. Farmers
were in a depression throughout the whole decade. The rural
poverty continued in 1920’s in-spite of the nation wealth grew
by billions it was not distributed evenly. Unequal distribution of
wealth disposable income is money remaining after the
necessities of life are paid.
The top 1% received a 75% increase in their disposable income
while the other 99% saw an average 9% increase in their
disposable income. 80% of American had no savings at all. The

4. economy grew by billions throughout the 1920’s. Total realized
income rose from $74.3 billion in 1923 to $89 billion in 1929.
High tariffs and war debts at the end of World War I, European
nations owed over $10 billion ($115 billion in 2002 dollars) to
their former ally, the USA. Their economies had be devastated
by war and they had no way of paying the money back. The
USA insisted their former allies to pay the money. This forced
the allies to demand Germany pay the reparations imposed on
her as a result of the Treaty of Versailles. This all later led to
financial crises when Europe could not purchase goods from the
USA. This debt contributed to the Great Depression.
In 1922, the USA passed the Fordney-Mc Cumber Act, which
instituted high tariffs on industrial products. A tariff is a tax on
imports. Other nations soon retaliated and world trade declined
helping bring on the great depression. The production at
factories increased but the wages for workers were not
sufficient to meet their requirements. Few workers could afford
to buy factory output. The surplus products could not be sold
overseas due to high tariffs and lack of money in Europe.
Demand and supply was not balanced due to over production in
industry. Due to surpluses and overproduction, farm incomes
dropped throughout the 1920’s. The price of farm land fell from
$69 per acre in 1920 to $ 31 in 1930. Depression in agriculture
began in 1920’s it lasted until the outbreak of World War II in
1939. In 1929 the average annual income for an American
family as $750, but for farm families it was only $273. The
problem in the agricultural sector had a large impact as 30% of
Americans still lived on farms.
In the year 1928 presidential elections, Democratic New York
Governor Al Smith ran against Republican Secretary the
Republican secretary of Commerce Herbert Hoover. People
were suspicious of Smith who was Catholic, while Hoover was
popular for feeding starving Europeans after WWI. Al Smith.
Hoover’s winning platform was based on continues prosperity.

5. “We in America today are nearer to the final triumph over
poverty than ever before in the history of any land. The poor
house is vanishing from among us.”
“I do not believe that the power and duty of the General
Government ought to be extended to the relief of individual
sufferings. The lesson should be constantly enforced that though
the people support the Government the Government should not
support the people”. President Hoover’s 1930 belief in self-
reliance would later affect his ideas about how to best solve the
upcoming depression. The farm crises were address by the
President Hoover on first priority as it was the urgent economic
problem is agriculture. Farmers suffering continues during
1920’s as wholesale food prices collapsed, which led to a lack
of money for purchasing new equipment, not pay mortgages and
they lost farms in depths. He Head the Food Administration
during WW1. Conducted relief efforts in Europe during and
after WWI. Earned a stellar reputation for efficiency and
diplomacy. It was very well explained in the book of American
history about the depression in the America.
Works cited
"The Permanent Frontier: No. 1: History of the American
Economy." Challenge 6.1 (1957): 38-42. Web.
"American Experience: TV's Most-watched History Series."
PBS. PBS, n.d. Web. 05 Dec. 2015.
History of the American Economy
CSUN - Economics 175
Written Assignment (10% of your overall grade)
Please provide a comprehensive answer to the following two
questions:
1) Which were the main causes of the Great Depression?

6. 2) Why did the Great Depression last so long?
Indications:
· To answer these questions, please start with our textbook
information and then use at least one more reputable source for
your research.
· Please use the bibliographic information recommended by the
Modern Language Association (MLA).
· Length: at least five pages.
· Due date: Final Exam day
Guillermo Cruz
Professor of Economics