Roaring Twenties Essay

Submitted By KayleeDanielle97
Words: 499
Pages: 2

At the end of the 1920s, the United States boasted the largest economy in the world. With the destruction wrought by World War I, Europeans struggled while Americans flourished. Upon succeeding to the Presidency, Herbert Hoover predicted that the United States would soon see the day when poverty was eliminated. Then, in a moment of apparent triumph, everything fell apart. The stock market crash of 1929 touched off a chain of events that plunged the United States into its longest, deepest economic crisis of its history. It was a combination of government, business, and consumer behavior that lead to the great depression. After World War 1 the US went into a period of isolation. With a succession of Republican presidents, government stayed focused on the economy. In order to do this, the government created many policies to help regulate said economy. These policies included tariffs such as the Fordney-McCumber Tariff. Other countries started to enact similar tariffs, and this stifled international trade, which negatively affected the economy. The government’s policy for aiding farmers during the war was also a leading cause in the depression. During the war, the government made up most of the agriculture business, and when that ended the agriculture industry came to a screeching halt. This brings us to business polices. The equipment used to make farming so much more productive was very expressive, so businesses let people start buying with credit, but most people didn’t have the money to pay them back. In addition, banks operated without guarantees to their customers, creating a climate of panic when times got tough. Few regulations were placed on banks and they lent money to those who speculated recklessly in stocks. Another major business flaw was overproduction of goods, they made more than people could buy. Consumer behavior was another major reason for the great depression. Companies increased production, but…