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Great Depression Essay

544 words - 3 pages

US History

1. What were causes of depression?

Economists and historians have agreed there were several factors that caused depression. One was poor econimic diversification or with other words, a lack of divesification in American economy in the 1920s. Prosperity had dependent excessevely on a few basic industries - automobiles and construction, which in late 1920s became to decline.
A second important factor was uneven distribution of wealth, and as a result a weakness in consumer demand. As production increased the proportion of profits going to potential customers was too small to create an adequate market for the goods the economy was producing.
A third major problem was the credit structure of the economy. Farmers were deeply in debt, and crop prices were too low too allow them to pay off what they owed. ...view middle of the document...

He tried to beat Depression by voluntary cooperation, but it didn't work out.
Hoover also attempted to use government spending as a tool for fighting the Depression. He proposed to Congress an increase of $423 milion, which was a significant sum at that time, for public work programs and public constructions. The most famous public project was construcion of Hoover damn.
In April 1929, he proposed the Agricultural Marketing Act, which established the first major government program to help farmers maintain prices. A federally sponsored Farm Board would make loans to national marketing cooperatives or establish corporations to buy surpluses and thus raise prices. At the same time, Hoover attempted to protect American farmers from international competition by raising agricultural tariffs.

3. The Election of 1932.

As the 1932 presidential election was approaching, Republicans renominated Herbert Hoover as their candidate. On the other side, Democrats nominated the governor of New York, Franklin Delano Roosevelt. Roosevelt had been a well-known figure in the party for a long time already. As a governor he haven't done miracles in New York, but he iniciated enough positive programs of government assistance to be able to present himself as a more energetic and imaginative leader than Hoover. The election came, and like the election of 1928, it was exceptionally one-sided. But this time, the landslide favored the Democratic candidate, Franklin Delano Roosevelt, who overwhelmed Herbert Hoover in all states except Delaware, Pennsylvania, Connecticut, Vermont, New Hampshire, and Maine. Democrats also won majorities in both houses of Congress.
Roosevelt won, receiving 57.4 percent of the popular vote to Hoover's 39.7 percent. It was obviously that Roosevelt benefited primarily from Hoover's failure to fight the Great Depression.

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