The stock market crash began in October 1929. Experts warned that stock prices were overvalued and thousands of investors withdrew from the stock market. By the 24th of the same month, panic began to spread. With panic came investors who sold all their shares, causing stock prices on the New York Stock Exchange to plummet. The stock market crashed on Tuesday the 29th, also known as Black Tuesday. Thousands of people from all walks of life have lost their life savings. By the end of the day several financiers had taken their own lives. How did this happen? It wasn't just the stock market crash that caused the Great Depression. There were major economic problems such as interdependent economic systems. The governments of Germany and Austria relied on the United States for loans to pay reparations to France and England for World War I. The French and British governments also depended on these reparation payments to repay the United States for loans taken out during World War I. So it was essentially a big network where if one part of the system was weakened or strained, it would affect everyone. Furthermore, there has been a huge decline in the demand for cash crops due to technological advancements. One of the major flaws of the global economy has been the backward state of agriculture. During World War I, farmers around the world increased production due to declining European agricultural exports. When the war ended, European agricultural activity returned to normal, causing global surpluses and causing prices to collapse. Along with all this came layoffs due to the extreme decrease in business activity and wages. A ripple effect was created because much of the world economy was dependent on US exports and capital. On top of everything...... middle of paper...... I lost the 1932 election by a landslide to Franklin Roosevelt. In conclusion, President Hoover downplayed the stock market crash and did not believe in government assistance during the Great Depression. He also believed that the American people could lift the nation out of this depression with hard work and self-reliance. When the Depression continued to worsen, he interfered with business and passed a destructive tariff. Although Hoover had good intentions when he created the Reconstruction Finance Corporation, he did little to improve or harm the nation's economy. The Bonus Army situation added to people's contempt for President Hoover. This animosity was demonstrated by the names given to Hoovervilles and Hoover blankets. While Hoover wasn't the only reason the Great Depression was so devastating, he certainly could have done more to help American citizens..