Causes of the Depression: Herbert Hoover

Question 1

What happened in 1928?

Answer 1

Herbert Hoover was elected into office as the president of the US and the citizens remained optimistic and confident in the American economy.

Question 2

What did the American people think they foresaw when Hoover came to power?

Answer 2

National prosperity. Hoover declared that the nation was finally winning the battle against poverty than in any other time of history.

Question 3

What would people invest in the stock market as a result of?

Answer 3

• rising dividends
• personal savings
• banks loans
• firms’ overproduction
• non-regulated stock market
• the consumption psychology.

Question 4

What was the crash initiated as?

Answer 4

A fluctuating market, which was dismissed by analysts hoping that the market would stabilize by itself. All these false hopes were being fueled by Hoover’s general view of the issue