Causes of the Great Depression Outline

Prompt: To what extent was the Wall Street Crash a cause of the Great Depression of 1929? Support your argument with specific examples.

Thesis: The Wall Street crash was a comparatively minor cause of the Great Depression - other, more major factors, such as economic issues with Europe, a problem in the farming industry, and the over-availability of credit led to the crash, which was simply the catalytic event of the Great Depression.

1) Severe economic strain with Europe upset the economy
a) war debts could not be repaid
i) America was not getting $ back from the Allies
ii) investments in Europe were declining
b) Foreign trade was in shambles
i) Hawley-Smoot tariff had a neg. effect on the consumption of US goods
ii) countries in Europe retaliated with their own tarrifs

2) The agricltural business fell apart
a) Farmers were unable to repay loans
i) farms were foreclosed
ii) banks were forced to shut down
b) crop prices declined
i) less and less demand for goods
ii) loweres the overall US income

3) Credit was vastly over-available
a) too many people bought things on credit
i) unemployment rates rising encouraged this
ii) both businesses and people suffer
b) people blindly invest in stock
i) no one suspected the crash, so everyone over bought
ii) with little money to begin with, putting it all in the stock market only worsened poverty

Conclusion: Though it was the "straw that broke the camel's back", the Wall Street crash was only a finale to a long chain of events - compartively, it is only one of many important causes to the Great Depression.

Causes& Effects of the great Depression

1.What happened on "Black Tuesday"?

On "Black Tuesday", the stock market crashed lower than it ever had before. Investors rushed to get rid of their stock; 16.4 million stocks were dumped that day. Many lost nearly all of their savings.

2. How did the economic trends of the 1920s in industry, agriculture, and with consumers help cause the Great Depression? (Make sure you include significant details about each area in your answer. It should be at least a paragraph)

In the 1920s, many industries began to fail. Other means of transportation, such as busses, replaced railroads in popularity, and new means of getting energy made the demand for coal mining or lumbering drop significatntly. Nearly every big industry needed to cut back significantly on jobs just to stay afloat. Another "sector" that was hit hard was agriculture - farmers had a surplus of goods, and no one to buy them. They tried to remedy this problem by upping production, but this only exacerbated the problem and put them into death. With banks foreclosing on their property and debts not getting paid off, its no wonder the economy started to head into a downhill spiral. Economic trends within the realm of consumerism echo this clearly - people were buying less and less products. Although companies were raising prices, only the very upper crust actually had enough money to buy luxury items. The rest of the population could barely keep a roof over their heads. People were quick to buy things on credit, and to invest in the stock market without thinking. This inflamed already occurring issues within the economy.

3. According to your reading, what are the major causes of the Great Depression?

The four major causes of the Great Depression are tariffs and war debt policies that effected foreign trade with America; a crisis in the farming industry; easy credit being too available; and an uneven distribution of income.

4. What was Hoover’s philosophy of government?

Hoover believed strongly in ended conflicts between different groups within the country. However, he was very against government handouts to the poor - he believed that it did not allow people to grow and fend for themselves, and preferred to encourage individuals and charities to help out the less fortunate without the aid of government funds.

5. What was Hoover’s initial reaction to the stock market crash of 1929?

Hoover's initial reaction to the crash of 1929 was that things were not as bad as they seemed; every boom is naturally followed by a depression, and worrying was not necessary because things would most certainly pick right back up soon enough.

6. What was the nation’s economic situation in 1930?

In 1930, nothing had improved - in fact, things had gotten worse. Soup kitchens became more and more common as the unemployment rates continued to climb ever higher, and the stock market continued to spiral out of control.

7. How did voters in 1930 respond to this situation?

The populace put much of the blame on Hoover; do to his unpopularity, they voted many Democrats into Congress.

8. What did Hoover do about the economic situation?
Hoover began to take several steps to right the economic situation. He began to back several individual groups, and convinced the nation's large banks to set up an organization that loaned money to smaller banks who were on the verge of bankruptcy. Hoover then passed the Federal Home Loan Bank Act, which let homeowners refinance their own homes, and helped farmers to stave off foreclosure. Finally, Hoover created the Reconstruction Finance Corporation. The RFC gave $2 million to refinance many major businesses, industries, and organizations.

9. How did the economy respond to his efforts?
Though Hoover's efforts seemed like they would work well, ultimately, it was too late to do anything - the situation had already grown so out of control that Hoover's plans and adjustments had little effect on the economy.

The Twenties Woman

1. Note two ways women's fashions changed.
Hemlines raised - bright, loose dresses that fell an inch above the knee became popular. Hair was cut into short, black bobs.
2. Note two ways women's social behavior changed.
Women began smoking in public and talking more openly about sex; they also began dancing varied styles of fast-paced dances.
3. Note two words that describe the attitude reflected by these changes.
Carefree, self-confident.
4. Note one way women's work opportunities improved.
Many college-graduates were able to turn to so called womens' professions - teaching, nursing, being librarians.
5. Note two ways women's home and family life improved.
Many products eased womens' workload in the home - electric appliances and ready-made food products. Women were able to focus more on their own lives, as well as their families, than cleaning and keeping house.
6. Note three negative effects that accompanied women's changing roles in the 1920s.
Sexism grew more common; although women were making great bounds forward, many people in the country (both men and women!) did not approve. Double standards popped up; even as women gained more rights and grew more open, men found ways to turn this in their own favor. Also, women were still not able to rise up int eh job market - after coming so far, they still had trouble gaining equal pay with men or holding positions of real power.

Prohibition and the Scopes Trial

Read Chapter 21-1, Changing Ways of Life, and answer the question below in at least two paragraphs. Make sure you include specific references from the reading to support your answer

Do you think the passage of the Volstead Act and the ruling in the Scopes trial represented genuine triumphs for traditional values? Think About:

• changes in urban life in the 1920s

• the effects of Prohibition

• the legacy of the Scopes trial


The Volstead Act and the ruling in the Scopes trial represented purely superficial triumphs for traditional values. It's impossible to change a country's morality; no matter what laws are passed, the basic values of every citizen cannot be adjusted to fit in with those of "traditional values". Take, for example, the Volstead Act - yes, it reinforced anti-alcohol laws, and yes, it worked to a minor extent. The steps that were taken to prevent the sale and consumption of alcohol, however, only served to encourage people to discover more creative ways to sneak around. This, one would think, actually lowers morality - now people were not only drinking but also lying and breaking the law. Such as it was with cities - there were so many people packed into one area, with such a wide variety of skills and interests, that activities that were not exactly reputable were bound to arise.
The Scopes trial showed the same false triumph. Certainly religious fanatics were happy with the victory, and because their moral values were being defended, but it did not carry through to the rest of the population. The fact that Bryan was unable to back up his arguments only impassioned supporters of evolution in schools; this has not change at all today. When one side forces their moral values on another, it only serves to enrage the other side, and results in a no-win situation.

Americans Struggle With Postwar Issues

After World War I, many Americans feared that Communists would take over the country.

1. How did the Justice Department under A. Mitchell Palmer respond to this fear?

The Justice Department under Palmer responded to this fear by severely abusing citizens' civil rights. They sought out and investigated every suspect accused of Communism, socialism, or anarchism; these "investigations" involved invading homes without warrants, jailing people without trial, and deporting immigrants without proper cause or trial.
2. Why did Palmer eventually lose his standing with the American public?

Palmer's investigations did not produce any evidence of either explosives or a revolution; people began to think his actions were more of a campaign gimmick than a serious issue.
3. How did the Ku Klux Klan respond to this fear?

The KKK responded to this fear by proclaiming it's "100 percent Americanism" theory far and wide. They used America's dislike of Communism as an excuse to terrorize any minority group - from Jews to Roman-Catholics to blacks to immigrants, no one who was not white, native born, and a gentile was not safe from the KKK's wrath.
4. Why did the Klan eventually lose popularity and membership?

Although the Klan maintained popularity for quite some time, eventually it's history of criminal activity discouraged people from joining its ranks.
5. Briefly describe how Sacco and Vanzetti became victims of the Red Scare.

Both men were Italian immigrants, anarchists, and had evaded the draft. They were arrested in May of 1920 and accused of murdering a factory paymaster and his guard; the witnesses had said that the suspects "appeared to be Italian." Although both men had alibis and the trial was not fair, they were still found guilty and were given the death sentence. Although protests rang out throughout the US, the mind of the Massachusetts governor could not be swayed, and the two men died on August 23, 1927.

Public opinion turned against labor unions as many Americans came to believe that unions encouraged communism.

6. Why was the strike by Boston police unpopular with the public?

The public was outraged that their safety was being put at risk; without the police being active, they were being put in danger.
7. Why did Massachusetts governor Calvin Coolidge become so popular?

In response to the Boston police strike, Coolidge had called in the National Guard. He was immediately praised for saving the city and the state, not to mention the nation, from the throes of anarchy and Communism.
8. Why was the strike at U.S. Steel unpopular?

The strike at U.S. Steel was unpopular because it resulted in much violence. Strike workers were treated violently by strikebreakers, the police, the militia, and federal troops. Also, factory owners resulted to propaganda to link the strikers to Communism. The public was so sick of war that the warlike tactics used in the strike were highly unpopular.
9. How did President Wilson respond to the steel strike?

Wilson responded to the steel strike by making a written plea to the negotiators of the strike (the labor side and the management side). In this plea he presented the aforementioned view of not using warlike tactics so soon after a real war had just ended.