For a number of years now, we have all heard about the causes of the Great Depression. There are actually a lot of those causes and while not every one of them can be attributed to President Hoover, many of them certainly do. The causes of the Great Depression was a source of debate throughout the world for a time, but today we know why things got that way.
The first one on the list of causes of the Great Depression, President Hoover apparently believed in supply and demand. The theory states that as the supply of goods and services are decreased, the demand for them increases. As it does, prices will decrease and more people will be able to afford them. This theory also notes that when there is too much supply of any good or service, prices will remain higher than normal.
The second one on the list of causes of the Great Depression is a theory called the Law of Diminishing Returns. This theory states that the more that something is done, the less that it is done and the more that something can be done, the less it is done. This theory can be used to explain why, after so many changes were made to the laws of supply and demand, the prices of goods continued to go up. Of course, what economists fail to note is that this is still a theory.
The third causes of the Great Depression worksheet answers the question, what caused this? It is a theory that states that the money supply creates its own demand for it. The more money that is in circulation, the more money that has to be created. Money created during the early part of the Great Depression was not always from the new loans that the government began funding and those were not very popular during the time period.
The fourth economic theory on the list of causes of the GreatDepression says that we do not have to wait until the government promises to create money in order to make sure that prices are lowered. In fact, this same theory explains why you are not always treated fairly by the stores and other businesses around you. Because if they didn’t receive payment for their goods and services, then how would they have anything left to pay out. This also is a theory of economics that cannot be completely proven and a number of people have tried to use it to explain why a business cannot get along with its competitor.
The fifth economic theory on the list of causes of the Great Depression states that the price of goods and services are influenced by human emotion. The theory states that humans will react to a situation that is in motion and react based on emotions rather than logical thinking. There is something about human emotion that is extremely powerful and can lead to drastic changes in the behavior of a person.
The sixth economic theory on the list of causes of the Great Depression worksheet answers the question, why did President Hoover to get into politics? There are several theories as to what led to his career in politics. Some say that it was because he was well aware of how the country had a poor economy. Others say that it was because he wanted to help out his brother, who was suffering with a bad case of pneumonia.
The seventh causes of the Great Depression worksheet answers the question, what causes the economy to turn down. It is a common belief that there is no such thing as a stable economy. As economies turn down, people tend to lose confidence in their fellow man, and they begin to use violence becomes a way of life.