The Long-Term Causes Of The Great Depression

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On October 29th, 1929, the hugest stock market crash befell in American history which is as known as Black Tuesday. It triggered the final consequence under the unstable society and lead to the Great Depression. The Great Depression was a period time from 1929 to 1939 when American was in its deepest economic downturn in history. Consumer spending and banks were two of the long-term causes of the Great Depression. Prices of necessary kept rising, but people’s wedge stayed the same. People could not afford their daily supplies and were facing to starvation. Many banks closed because people did not trust banks to put their money in. When banks closed, business did not get loan to keep opening, so the economy became like stagnant water. In the early 1928, Hoover was elected to be the 31st president of the
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When the Great Depression first occurred, Hoover responded to not interrupt because of his three beliefs: rugged individualism, voluntary cooperation, and the cycle of economic. He asserted that the government should not interrupt businesses and people’s lives. It was not government responsibility to take care of people who were disabled, elderly, or unemployment. He firmly believed it is economy’s nature to have upturn and downturn. His waiting and doing nothing plan has finally pushed American to its worst depression. In 1932, FDR got elected, and he believed that reform, relief, and recovery were the steps to save America’s economy from its depression. He approved every program and laws, known as the New Deal, to help American people. The New Deal was a success due to its efficient economy recovering results and
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