Hoover Was The Main Cause Of The Great Depression

The Great Depression began on October 29, 1929 when the the stock market crashed and lasted until the late 1930s. During the depression, Banks failed, businesses went bankrupt, and workers lost their jobs. The first cause of the Great Depression was farming crisis. During War War I, the American farmer overproduced crops to dded the soldiers in Europe and many farmer took out loan to expand their land and buy farming equipments. After the war, the demand for crop drop almost 40 percent, which caused the crop price to drop. Farmers could make enough money to support their families and pay their debt, so they were forced to leave their land and go elsewhere to find work. The banks could not get their money back and the flow of consumer demand also stopped because farmers had no money to buy consumer products. The …show more content…
Hoover was elected president in 1928. He supported rugged individualism, which meant that the government should not interfere with business and people’s economic life. Individuals should be responsible for their own success and failure. Hoover also advocated for voluntary cooperation. Furthermore, Hoover also believed that the economy has a natural cycle and it would eventually become better without much government interference. Roosevelt run for president against Hoover in 1932 and won the election in a landslide. In contrast to Hoover, Roosevelt believed in direct federal relief and the “try anything” approach, which meant that the federal government should do everything it can to improve the economy. The New Deal was FDR’s plan to end the Great Depression. It included three R’s --- reform, relief, and recovery. The New Deal was a success because it provided relief to minorities, reform the country’s economy, and restored the people’s confidence in the