Great Deppression

The great depression started towards the end of world war one. President Hoover was in the white house and to everyone things were going good. America played a big roll in the war, like funding other countries and letting them pay us when they could and stuff. But its there series of events that came on to bite u s in the but.

When we started to lend money out we figured that we would be able to get it back pretty much right after the war. But the countries in Europe had to rebuild there countries so they couldn't pays us back. That gave us some problems later on putting into play the Fordney-McCumber tariff. This tariff raised tariff to an all time high. This taxed imported goods a lot so we would buy only American stuff.

Now the farmers during the war were expanding making food to sell for everyone making some money but after the war came the down fall. Farmers started to compete and so they would take out loans to expand and get better machinery. Soon they started to over product and so they had all this extra food that no one bought and it all went to waste and they lost money. Then they couldn't pay the bank back and so they lost money also.

With the industry aspect things were going pretty good and in 1926 it was at its best. Then something happened that no one thought would everyone had cars and houses. But companies kept building and there was no need for it. So every one like business wise suffered because no pay was getting and then there were people with no jobs. Then when people wanted a loan or something the banks just handed it out to any one who needed it. Then when they couldn't pay the bank back they bank lost that money and probably went out of business.

Then there was an uneven income to. The farmers were struggling to make a living and the people with socks made the money. So the farmers couldn't afford any thing and they poor got poorer while the rich got richer. So from this happening the people would go to the bank and take money out. The banks were weak and stupid so they gave it to them and never got the money back and close. Over like 9000 banks had to close because of that. Finally the Feds acted by raising interest rates. This was a mistake and worsened the situation rather than help.

So all these events lead up to Black Tuesday were the depression didn't start it just reached its low here. The total chaos of the crash was the last thing we needed!

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