The Great Depression occurred because of the numerous circumstances leading to it. No one affect can pinpoint exactly what finally forced the issue; the combination of different factors made the depression even more surprising and more painful. The over indulgent nature of the roaring twenties gave Americans the false pretense that they were in a position they were not. Believing they were ridding themselves of national problems, like poverty, they were actually committing many unknown ills that would soon result in great economic hardship. With Harding’s administration, scandal ran rampant. Such loose moral standards and the idea of getting rich as quickly as possible weakened the overall strength of the nation, both politically and economically. This boom or bust ideal left many industries in very precarious situations. Namely the agricultural industry was put in a position where they were no longer able to rake in the dough. The McCormick reaper mower also provided a challenge to the farmers and led directly to the circumstances causing the depression. Other economic challenges led directly to eventual downfall of the American market, but the depression was truly catastrophic because of all the elements that led to it combined to make a monster beyond comparison.

            When Hoover was elected in 1928, the economy of the nation was peaking. The quality of life in America was reflective of the life which they had grown accustomed to. But the golden twenties were about to end with the great crash on Black Tuesday, October 29, 1929. Initially triggered by the British with their increase in the interest rate in order to gain some of the business that American investors had taken away. On that day, over 16 million shares of stock were sold in a save yourself scramble. The subsequent business depression heralded an era of horrible times both domestically and abroad. The over production of America left the nation in a depression that was not a sense of lacking, but a sense of too much. Farmers and factories, due to the boom and bust methods of business, had created such a flood of the market that left the nation and the world in dire straits. Hoover’s response reinforced his philosophy of “rugged individualism”. His sense of being a wonder-worker and efficiency engineer soon crashed as quickly as the stock market. The economic necessities of the time was that of reform. But he believed strongly in his industrial machine and felt the situation would present a solution. It didn’t. And the depression would ring on until the next great World War. Many unfairly place a significant amount of blame on Hoover because of his position of power when the fall occurred. But his actions, although clearly not effective, were not as ill willed as many would like to have believed. It would take drastic circumstances that no one man could initiate, like World War 2, to end the depression.

            The Great Depression was in a way caused by the overproduction of items in the United States.  The country was able to produce large amounts of goods due to the many industries that were located throughout the country.  However people generally did not have enough money to buy these items.  Factory owners were becoming very wealthy.  They would then invest this money into factories and other organization of production.  This money should have been used towards salaries and wages rather than towards more factories that would only create more items.  If people were then receiving more money for pay, they could use the money to buy items.  However this did not happen.  Instead the factories in the United States produced more than the people could consume.  This fact was one of the issues that led to the Great Depression, which was even sometimes known as the “great glut” or the “plague of plenty.” 

            The Great Depression was also somewhat caused by events overseas.  Britain began to raise their interest rates.  They did this to bring back money that was invested in American businesses.  This caused foreign investors and “wary domestic speculators” to sell their stocks.  Many other people then followed this action.  This selling grew, and then on October 29, 1929 16,410,030 shares of stocks were sold. 

            The Great Depression greatly affected the people of the United States.  By the end of 1930 over four million people were unemployed and jobless.  Only two years later about twelve million people were suffering the same fate.  People who still had jobs also suffered.  Their employers usually greatly reduced the wages of the workers.  Around five thousand banks collapsed as a result of the crash of the stock market.  Many people were going hungry because of the lack of money to buy food.  Soup kitchens and bread lines were created to try to assist the people’s search for food.  Women also had fewer children during this time because of everyone’s unhappiness. 

            Herbert Hoover’s belief in rugged individualism had to be put aside in order to help the people of America.  “Hoover was finally forced to turn reluctantly from his doctrine of log-cabin individualism and accept the proposition that the welfare of the people in a nationwide catastrophe is a direct concern of the national government.” (789).  He decided to help the railroads, banks, and rural credit corporations instead of directly helping the people.  He hoped that this method would help the people because of a trickle-down effect, where the restoration of the big corporations on the top would “trickle down” to the unemployed people at the bottom of the pyramid.  This method of dealing with the Great Depression was a compromise between his belief of individualism and the belief in directly helping the people.  He later also issued public works, such as the building of the Hoover Dam. 

            Many people criticized Hoover’s method of dealing with the Great Depression.  People did continue to suffer, but Hoover probably helped prevent another crash that would be even worse than the first.  Also his plan helped lead the way for Roosevelt’s New Deal. 

Some factors that led to the Great Depression were: the stock market crash of 1929 on "black Tuesday," American’s reliance on credit, but most of all, overproduction. By the early thirties, one fourth of the American workforce was jobless. Ironically, some unemployed starved, despite farmer’s overproduction food. Farmers couldn't make a profit because their products would sell for such low prices. Eventually, the government decided to pay farmers to stop producing their crops.

Hoover gave verbal support to the people, but didn't start any welfare programs like Roosevelt did. He encouraged them to stay strong, but did nothing to get food on their tables. I don't believe that Hoover was an effective president because of his abundance of words, and lack of actions.