summative notes - the great depression

Main causes of the Great Depression

Bank Failures - bank failures were a huge part of the Great Depression because, before the Great Depression and during the Roaring 20’s, most people relied on the banks for discounts, loans, investments, and a way to keep their financial health healthy. However, after the stock market crashed in 1929, investors lost most of their money and this then led them to run to the bank and withdraw all of their money, hoping for some extra money. Unfortunately, due to many people buying on margin, installment buying, and using their credit unwisely during the Roaring 20’s, most people had doubled the amount of money they owed and didn’t have enough in the banks that was meant for themselves. Consequently, money became more and more precious and people became to spend less and less, leading to more and more businesses closing down and the owners of those businesses to run out of money to feed their family.

philosophies to help people come out of the great depression

hoover’s philosophy - he was very cautious and didn’t want to worsen things but also didn’t want to do anything that would lead America into a national debt, meaning that he wanted less government involvement (laissez-faire).

fdr philosophy - he was a risk-taker and thought that nothing could get worse than this and was willing to take the risks and national debts that was required of the government in order to help Americans. at the end of the day, fdr wanted more government involvement and would do anything to help Americans