Rizwan Alam What were the social, economic and political causes of the Depression?

the efforts of Herbert Hoover fail to halt the Great Depression?

Why did

After the World War Two and in the twenties, an era in which people were motivated to live for the short term. After the war Farmers weren’t asked for the necessary products during the war, businesses who made uniforms, and other army needs had to let go of the people who they hired during the war, which mostly were women. Harding and Coolidge, both full of morality and conservative ideas and staff, could not think of ideas to get the nation out of poverty. Then came the economic genius, Herbert Hoover, who himself rise from poverty, he used radio to communicate with the nation and poor people of America got a light of hope and therefore Hoover, in 1928, Hoover triumphed in a landslide with 444 electoral votes to Smith’s 87. People of United States of America in 1920’s were getting themselves into loans and buying all the products they wanted, but eventually it became an economic chaos and Hoover, who had no political background or experience, was the last hope for some Americans, but if he didn’t came to be what the people saw him when elected, the only result to the Great Depression would be another war. World War I had given the farmers prosperity, as they’d produced much food for the soldiers. This gave farmers enough money for them to spend it on experiments to improve and fasten up the pace of producing such goods, and they triumphed in making such products like the gasoline-engine tractor, but when the government refused to pay or buy products at such pace, these technologies became a huge factor in their disadvantages and eventually fell into poverty. McNary Haugen tried explaining the government and the president through his bill, which sought to keep agricultural prices high by authorizing the government to buy up surpluses and sell them abroad, helped a little. Unfortunately the presidents of that era believed the business of America was its business, and therefore Coolidge didn’t think critically when it came to the poverty of the farmers and vetoed the bill twice. Business of America is its business. Too much attention to the business and industrialized world was probably the biggest contributor in crashing and injuring the American economics. Many businesses, mostly who were stable, structured because of their history coming into 1900’s, lent money to people and other businesses. This worked great until after the war, when people simply refused to pay back. People put their money in stocks and kept buying products which kept moving the businesses until the people stopped buying because they didn’t needed any more products. This eventually led the businesses and lenders to top investing and that led to the complete crash of the businesses and the people and organizations linked with it. Because America demanded that Britain and France pay their debts, those two nations placed huge reparation payments on Germany, which then, to pay them, printed out loads of paper money that caused inflation to soar. This caused even a greater depression in Germany, and made them feel below everyone, which motivated them to get revenge and that is a huge factor of why they understood and listened to let a man in need of medicine run their country, that man named Hitler. in 1924, Charles Dawes engineered the Dawes Plan, which rescheduled German reparations payments and gave the way for further American private loans to Germany. The Germany asked for debt from the United States of America, and that helped Germany pay their debts to France and Britain and then they could make adjustments in their economy and paid off their debts to the USA. This helped no nation but brought anger in them and which drove these countries into the World War Two, hoping to end this depression. Hoover had never been elected to public office before, but he had made his way up from poverty to prosperity, and believed that other people could do so as

well. Unfortunately in the very beginning of his presidency, on October 29, 1929, a devastating stock market crash caused by over-speculation and overly high stock prices built only upon non-existent credit struck the nation. People looked the Hoover to panic and do something amazing to help the people of America, but Hoover believe these were just a part of life and part of business cycle, people clashed with him, radio stations debating on this issue for almost the whole decade of great depression, many said that he could feed millions in Belgium, after World War I, but not millions at home in America. When circumstances worsened Hoover went to act. Hoover voted to withdraw $2.25 billion to start projects to alleviate the suffering of the depression, The Hoover Dam of the Colorado River was one such project. Early in 1932, Congress, responding to Hoover’s appeal, established the Reconstruction Finance Corporation (RFC), which became a government lending bank. Unfortunately giant corporations were the ones that benefited most from this, and this feature also became another critic towards Hoover. Hoover’s contributions to help Americans get their way around poverty didn’t work, not at least in short terms.