1. Describe three causes of the stock market crash of 1929 (overproduction, under consumption, stock market speculation) that led to the Great Depression.
The stock market crash of 1929 was considered to be the worst-cased scenario in world's economical history. The main reason for this was the "overconfidence" of the people and the market. Bank credit began rising and people started borrowing money in order to buy shares. The stock market speculation continued even if prices already began declining in September. Even poor people were allowed to borrow money. Industries overproduced their products such as steel, iron, farm crops, etc. Many of these were overpriced that led to under consumption. The overproduction led to a loss in many industrial companies because people simply could not afford some of the goods. Although come companies, such as Ford, lowered their prices, it still experienced a huge loss such as having left over cars. So it resulted to the closing of many companies.
2. Connect the environmental factors, human factors (over farming) to the Dust Bowl and the resulting migration west.
Many people were promised of a better life after the Civil War in the form of "federal land acts" such as the "Homestead Act." The act allowed the people to own 160 acres of public land provided that they plow the area. This led to many people migrating to the Great Plains. This resulted to over farming. It was followed by a drought that barren the entire farmed area. The soils eroded and dust storms happened. Many of the cultivated areas became useless. Many people died because the dust storm caused pneumonia. Many people started migrating to the west, such as California. They became refugees in their own homeland.
3. What was the social, political and economic impact of widespread unemployment and connect them to the development of "Hoovervilles."
"Hoovervilles" was a squatter area which was built during the Great Depression. The Great Depression resulted to unemployment which means many people couldn't pay their rental fee and mortgage loan, thus, they were evicted from their homes. This is the reason why people started living in these shanty towns. It was also blamed on "Herbert Hoover," the 31st president of the U.S.A. He wasn't able to curb stock market speculation but instead became more optimistic thus more people invested. He believed that the strength of the country relied on banks and railroads. For this, he was wrong. When the stock market crashed, many people started cashing out their savings.
