Ch. 11 The Great Depression. 11.1 Causes of the Great Depression. HERBERT HOOVER ELECTED PRESIDENT, 1928. "We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us.“ 1928.
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"We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us.“ 1928
“…It has been a twelvemonth of wonderful events, of unprecedented prosperity, in this country at least; of extraordinary practical applications of science, of great and fruitful benefactions, of many advances in the arts and professions which may be called social, and of a more firmly established conviction that the wealth and power of the United States will be found equal to every emergency or responsibility that may arise. If there is no way of judging the future but by the past, this New Year’s Day may well be one of felicitation and hopefulness…”
1. Hoping for a quick profit, they engaged in speculation
By the beginning of 1928, speculating in the stock market had become almost a national mania. It was not true that “everybody was in the market,” but it just seemed that way. Only about 3 million people had invested in the stock market.
WALL STREET ON THE DAY OF THE CRASH, OCTOBER 1929
News of bank failures worried Americans. Many rushed to their banks to withdraw their savings, only to find that the banks had no cash reserves & closed.
Percent of Population Earning This Income
D. Stock market crash led to a decline in economic activity; people weren’t buying goods & businesses were forced to lay off workers