Printed Page 640 Chapter Chronology
The Great Crash
Why did the American economy collapse in 1929?
At his inauguration in 1929, Herbert Hoover told the American people, "Given a chance to go forward with the policies of the last eight years, we shall soon with the help of God be in sight of the day when poverty will be banished from this nation." Those words came back to haunt Hoover when eight months later the prosperity he touted collapsed in the stock market crash of 1929. The nation ended nearly three decades of barely interrupted economic growth. Like much of the world, the United States fell into the most serious economic depression of all time. Hoover's limited response to economic catastrophe proved inadequate.