In 1929, the worst downturn in American economic history began. The stock market crash led to unemployment, business closings, and an excessive supply of products. President Hoover’s inability to solve this crisis raises the question of whether the Great Depression could have been averted. The first area the government could have addressed was overproduction – in the 1920s, manufacturers were producing too many goods due to the post-war technological improvements. The second problem of this period was the overreliance on credit. Many people purchased goods on credit and borrowed money to invest in the stock market. To prevent this issue, tighter restrictions should have been put on who could buy on credit. Finally, as the stock market was also engaged in people’s use of credit, it was also affected. The government could have regulated the stock prices when they started to fall, although it would go against the United States’ free-market ideology.
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NerdyBro. (2022, June 7). Could the Great Depression Have Been Averted? Retrieved from https://nerdybro.com/could-the-great-depression-have-been-averted/
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NerdyBro. (2022, June 7). Could the Great Depression Have Been Averted? https://nerdybro.com/could-the-great-depression-have-been-averted/
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"Could the Great Depression Have Been Averted?" NerdyBro, 7 June 2022, nerdybro.com/could-the-great-depression-have-been-averted/.
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NerdyBro. (2022) 'Could the Great Depression Have Been Averted'. 7 June.
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NerdyBro. 2022. "Could the Great Depression Have Been Averted?" June 7, 2022. https://nerdybro.com/could-the-great-depression-have-been-averted/.
1. NerdyBro. "Could the Great Depression Have Been Averted?" June 7, 2022. https://nerdybro.com/could-the-great-depression-have-been-averted/.
Bibliography
NerdyBro. "Could the Great Depression Have Been Averted?" June 7, 2022. https://nerdybro.com/could-the-great-depression-have-been-averted/.
References
NerdyBro. 2022. "Could the Great Depression Have Been Averted?" June 7, 2022. https://nerdybro.com/could-the-great-depression-have-been-averted/.
1. NerdyBro. "Could the Great Depression Have Been Averted?" June 7, 2022. https://nerdybro.com/could-the-great-depression-have-been-averted/.
Bibliography
NerdyBro. "Could the Great Depression Have Been Averted?" June 7, 2022. https://nerdybro.com/could-the-great-depression-have-been-averted/.