Name Professor Course Date American history PART 1 (A) 1. Why did the stock market crash in 1929? One of the primary causes that led to the crash of the stock market was move by various individuals with excess cash to stop market speculators (Divine et al., 751)…
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The other great expansion was amount of buyers. All this factors that experienced great expansion led to the increase in buying public utility stocks contributing to a rise in their prices. In October 1929, America experienced a dramatic fall in utility price. The decline in utility price caused panic among the margin buyers and they had to sell all the stocks (Divine et al., 751). 2. What was the legacy of the New Deal? The legacy of the New Deal is that it played a crucial role toward alleviating the worst suffering of the depression. For example, the early New Deal contributed in assisting bankers and industrialists (Divine et al., 762). Moreover, the early New Deal tried to assist large farmers and members of the labor union (Divine et al., 762). However, the New deal was still being held captive of the conventional thinking of the day. It is not possible to say that the New Deal would have ended the depression basing in the historical facts. For example, development of the World War II interrupted the process. 3. How did Franklin Delano Roosevelt’s political philosophy affect his New Deal? Roosevelt political philosophy contributed to a decline in his New Deal (Divine et al., 751). He played a crucial role in defeating a number of conservative Democratic congress representatives and senators. Roosevelt’s target gleefully changed the interference with local politics. Divine et al., (774) indicates that only one of the men that Roosevelt sought to defeat lost in primaries. The worst blow of Roosevelt’s New Deal came in the economic sector. Most of the business executives claimed that Roosevelt recession reflected a lack of confidence in FDR’s leadership hence leading the New Deal to become ineffective (Divine et al., 751). 4. How did Herbert Hoover deal with the depression? Hoover blamed the depression on foreign policies. He rejected various proposals for bold government and relied instead on voluntary cooperation within the business of which he used to halt the slide (Divine et al., 754). Moreover, he called various leaders associated with industries to the White house and secured agreement to maintain prices and wages at a high level. Hoover also believed in voluntary efforts that played a significant role in relieving the human suffering brought about by the depression. On this case, he called private charities and local governments to help in offering clothes and food to the needy ones. With the request of Hoover, Congress managed to cut taxes in an attempt to restore public confidence. He also managed to adopt a few federal works projects such as boulder dam in order to provide jobs for the young people (Divine et al., 754). 5. What were the weaknesses of the New Deal? Through the New Deal, Roosevelt managed to develop the Works Progress Administration (WPA). Through this organization, the burden of unemployment eased but it failed to overcome depression (Divine et al., 760). This means that one of the weaknesses of the New Deal is failure to overcome depression. Through the New Deal, the WPA filed to prime the American economy by increasing consumer purchasing power. The other weakness associated with the New Deal is that it led to a growing frustration and the appearance of more radical alternatives. These alternatives challenged the conservative nature of the New Deal that made the FDR to shift to the left (Divine et al., 760). Part 1 (B) What were the forces that caused the stock market to crash? According to the article, one of the causes that led to the
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