Summary
        The Great Depression had numerous causes and majority of them were rooted in the 1920's. After World War I many Americans turned to a more individualistic type of life style. Americans started to spend their money frivolously on new inventions such as cars instead of being frugal with their earnings. By Americans buying consumer products at such a high rate economy stayed strong, but there was one problem. The gap between the rich and the poor was widening. Rich people just kept getting richer. Business owners kept getting more money, but the worker's salary remained the same. Bussiness revenue went up to 65 percent, while worker's wages only went up eight percent. The governemnt did not help the situation either when they passed the Revenue Act in 1926. This act states that Anyone making a million dollars or plus gets a one third tax reduction.
          Another problem with Americans was they had a new invention called credit. Americans bought beyond their means and didnt think about how they would pay it off later. Americans were into the whole get rich quick motto and thats why many non wealthy people invested into the stock market. In the 1920's the shares started to increase in price and even cost more than what they were worth. Many people bought the inflated shares because they thought the prices would keep getting higher. When the stock market collapsed, it was a huge blow to the rich and poor alike.

Analysis
         The causes of the Great Depression are extensive and its a product of a series of unfortunate events. The American population is much to blame for the collapse of the economy. It was the people who just kept spending and spending without any thought. They began to pile up so much debt on themselves that the economy feeling the blow was inevitable. People just wanted to get rich, which doesnt really change with any decade, but in the 1920's everyone's need for wealth and consumer products is what sent the country and millions of Americans toppling down.

Citation

Kelly (2012, May 20). The great depression . Retrieved from http://www.brucekelly.com/library/great-depression.html

Reflection Question
How did Americans play a role in causeing the depression?

Summary
         Herbert Hoover was the president at the initiation of the great depression. Hoover believed that if workers had high wages and were able to share their jobs in place of being laid of then the economy would improve because they would be able to buy goods and services to provide wealth to the country. Hoovers ideas of having workers combine jobs and keep up high wages for them were Hoover's pro-labor cause. Hoover was a big cause of the great depression with his labor ideas. hoover consulted with numerous industry leaders to talk to them about increasing or stabilizing workers incomes, or have workers share their jobs in order tot keep the unemployment rate down. Hoovers plan caused the inflation of the wages to constantly grow at a time when deflation struck. The company owners did not have the money to pay the workers increasing wages. Since the companies could not pay the workers, they started to lay off workers and cut their week hours.

Reflection
         Herbert Hoover had the right intentions when he went to the companies. He caused bigger problems than just deflation though. Because of him, companies did not have the money to pay the workers their high fees, so they got laid off any ways. productivity in the country was low, so the companies just didn't have the money to pay the workers anymore. Hoover's pro-labor policies caused about two-thirds drop in America's gross domestic product. Without hoover The Great Depression may never of even happen, t could of just stopped at a recession.

Citation
Sullivan (2009, August 28). Hoover's pro-labor helped cause great depression, ucla economist says . Retrieved from http://newsroom.ucla.edu/portal/ucla/pandering-to-labor-caused-great-91447.aspx


Question
Do you think the Hoovers policies made America's economic crises worse?

Summary
       Before the crash of the stock market, unemployment rates already started to heighten. When more people are out of work, it means tehre is a smaller demand for consumer products. As the demand fell, deflation rose. Banks were panicing and the world monetary system crashed which caused panic in many Americans. The Great Depression was a series of unfortunate events. Workers were not being hired because there was no market for the products. There was no market for the products because the workers would not be hired so they didn't have money to spend on the products.

Analysis
       Basically everything that could of went wrong in a juncture of time did and that is what caused the depression. It was basically a circle that kept going round and round. Workers were out of work and couldn't find jobs because nobody was hiring due to the already overproduction of goods. The workers were the ones buying the goods, but they were out of work and couldn't afford good anymore, thus pushing the economy furthur into the brinks of depression.

Citation
       

Bradford DeLong. (1997, February). Slouching towards utopia?: The economic history of the twentieth century. Retrieved from http://econ161.berkeley.edu/TCEH/Slouch_Crash14.html

Question

Do you think the Great Depression was inevitable?