Essay on The Great Depression During World War I

1113 Words Jan 29th, 2016 5 Pages
The Great Depression was a time period when the United States’ economy failed. During that time, many citizens lost their faith in the economy and became jobless and homeless. One of the causes of the Great Depression was failure in industry. Many people lost their jobs due to the development in technology. People who worked in the railroad and mining industry lost their jobs because of the development of cars and new forms of energy, such as hydroelectric and natural gases. Also less homes were being constructed, so other companies like steel and wood lost business and money. Another long term cause of the Depression was failure in agriculture. After World War I, the demand for goods from the USA to Europe dropped 40%. This caused farmers to produce more since the prices of their products were being deflated. Overproduction caused a lot of extra, unnecessary food which farmers couldn 't sell. So farmers weren 't able to pay back the loans they owed the back, resulting in the banks taking away their farms and other companies failing since they relied on those farms. In the year 1928, right before the start of the Depression, President Herbert Hoover was elected. He believed in rugged individualism, voluntary cooperation, and that the economy had natural cycles. These three beliefs prolonged the Depression because Hoover thought that people should succeed through their own efforts, which meant that the government should not help them. His belief in voluntary cooperation,…

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