Hoovers Effect on the Great Depression

Hoovers Effect on the Great Depression


The year was 1929. This is the start of the biggest national crisis since the civil war. It was the Great Depression. The stock market was going in a slump that started in October. By the end of Hoover’s term in office unemployment rates had sky rocketed and left 12 to 14 million without jobs, and the supply of money was scarce and only getting worse (Encyclopedia Americana: Herbert Hoover 1-2).
There are many reasons that the Great Depression started. One of the most well known causes is the stock market crash that happened on October 29, 1929. Before this day the stock market had grown considerably, making companies profits go up. General Electric had tripled in value which came out to about $396 per share of stock. After October 29th, 1992 many business lost thousand of dollars, money that had just seemed to vanish into this air, never to be seen again. The stock market crash was followed by many cuts that had to be m...