20 Mar PARTICIPATION #6–Great Depression

***** IF ANY CONCERNS PLEASE MESSAGES ME ASAP

The Great Depression was the worst economic downturn in the history of the industrialized world. In the United States, the beginning of the economic crisis was marked by the stock market crash of October 1929 and continued through the nation’s transition to a wartime economy in the build-up to America’s participation in the Second World War. In the initial years of the depression, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid-off workers. By 1933, when the Great Depression reached its lowest point, the American economy had shrunk by one-third, industrial production had decreased nearly 50%, farm income had declined by 56% (over a million farmers had lost their homes), 40% of the country’s banks had failed (nine million savings accounts had been wiped out), real wages fell 60%, and 13 million Americans (25.2% of the workforce) were unemployed.

Before responding to this class participation assignment:

• Please watch the Intelecom video–The Unfinished Nation: Hard Times https://fod.infobase.com/OnDemandEmbed.aspx?lti=1&token=71440&wID=96888&loid=0&w=865&h=648

For this week’s participation assignment, please respond to the following questions:

1. Using specific examples, identify the weaknesses in the American economy before the Great Crash of 1929.  In your response, please explain whether or not the pro-business policies of Presidents Harding and Coolidge contributed to the worsening of economic conditions by 1929. 
2. What specific policies did President Herbert Hoover adopt to reverse the economic downturn?  In your opinion, why were those policies insufficient in resolving the task at hand?